Glossary
Hawala
حوالةDefinition
An informal value-transfer system based on a network of brokers, with roots in classical Islamic commercial law.
The classical hawala contract transfers a debt from one party to another. Modern hawala networks transfer money internationally through trust-based settlement between brokers — pre-dating SWIFT by centuries.
Hawala is permissible in principle. Most modern jurisdictions regulate it under anti-money-laundering rules; some have banned it.