Informal Value Transfer Systems

Informal Value Transfer Systems (IVTS) are methods of transferring money outside of traditional banking channels, often used within communities or across borders. They include systems like hawala or hand-carried cash that rely on personal or community trust rather than formal institutions. These systems are typically quick, low-cost, and accessible where banks are unavailable or restricted. While they facilitate legitimate remittances and cash exchanges, they can also be used for illegal activities due to limited regulation. Overall, IVTS serve as important financial tools for those lacking access to formal banking services.