10 Questions
What is a potential consequence of conducting hawala transactions?
Risk of financial loss due to fraudulent practices or errors
What is a motivation for hawalanders to maintain their network and serve customers well?
To attract more customers and maintain their reputation
What is a potential misuse of unregulated hawala systems?
Money laundering, terrorist financing, and other illegal practices
What can affect the value of money transferred via hawala?
Fluctuations in exchange rates or other market conditions
What was the estimated amount of cash accepted by Dutch potato and onion traders between 2014 and 2019?
150 million euros
Why did the surveyed agricultural product traders in the Netherlands report accepting cash payments?
Because there is no functioning banking system with Mauritania, for example
What is the term for a payment through a person or entity not normally related to the deal?
Third-party payment
What is the primary motivation behind the use of hawala banking?
Cultural motives, speed, trust, and hiding from supervision of governments
What is the main characteristic of hawala banking?
Informal system of transactions based on trust
What is the purpose of the example case discussed in the course?
To provide a practical explanation of how hawala banking works
Learn about the origins and current uses of Hawala banking, a traditional informal financial system that has been linked to money laundering and terrorist financing. This course covers the risks and integrity issues associated with Hawala banking, including a real-life example of its role in money laundering.
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