Hawala

Hawala is an informal method of transferring money, often used in regions where traditional banking is less accessible. Instead of moving cash across borders, individuals go through trusted brokers, known as hawaladars, who hold no physical currency. When someone wants to send money, they pay the sender's hawaladar, who then contacts a corresponding broker in the recipient's area to release the equivalent amount to the receiver. This system relies heavily on trust and personal networks, making it fast and often cheaper than formal banking. While useful, hawala can be misused for illegal activities due to its lack of regulation.