How is money laundering different from hawala???
Answers
Hawala is a method of transferring money without any money actually moving. Interpol's definition of hawala is "money transfer without money movement." ... Transactions between hawala brokers are made without promissory notes because the system is heavily based on trust and the balancing of hawala brokers' books.
Hawala is a method of transferring money without any money actually moving. Interpol's definition of hawala is "money transfer without money movement." Another definition is simply "trust." Hawala is an alternative remittance channel that exists outside of traditional banking systems. Transactions between hawala brokers are made without promissory notes because the system is heavily based on trust and the balancing of hawala brokers' books.
Money laundering is the process of creating the appearance that large amounts of money obtained from criminal activity, such as drug trafficking or terrorist activity, originated from a legitimate source. The money from the illicit activity is considered dirty, and the process "launders" the money to make it look clean.