Hawala

Hawala (also called hundi) is an ancient system of transferring money without using banks or traditional currency. It is a method of transferring money used in parts of the Middle East and South Asia. The way it works is that someone who needs to send money to another person contacts a 'hawala broker' and gives them the money. The hawala broker then contacts another hawala broker in the destination city and arranges for the money to be transferred there. The recipient in the destination city then goes to a hawala broker to collect the money. The money never changes hands between the two hawala brokers and there is no traditional form of currency or bank transfer involved. It is a very simple but efficient way to transfer money.