HAWALA, MONEY LAUNDERING, AND TERRORISM FINANCE: MICRO-LENDING AS AN END TO ILLICIT REMITTANCE.

The article discusses the hawala transaction as a term and a concept, and its security challenges. It notes that hawala is depicted as money transfer without money movement, wherein a hawaladar operator will call, e-mail, or fax another hawaladar, who will pay using his local funds and local currency. It explores the use of countervaluation procedure on trade-based money laundering and its relation to terrorism finance. Current regulation efforts to combat these issues are also discussed.