The Money Exchange Dealers of Kabul : A Study of the Hawala System in Afghanistan

Money convenient, and inexpensive means of transferring funds into Afghanistan and among its provinces. They offer a diverse range of financial and non-financial business services at the local, regional, and international level. More recently, they have been instrumental in providing financial services for the delivery of emergency relief and humanitarian and developmental aid into Afghanistan for the majority of international and domestic NGOs, donor organizations, and development aid agencies. This study was undertaken to: (1) determine the current practice of hawala in Afghanistan; (2) verify the assertions regarding the convenience, speed, and cost-effectiveness of hawala transactions in comparison with formal financial institutions such as the central bank and the remaining state banks; (3) evaluate the use of money exchange dealers to remit development funds to regions that are not served by formal financial institutions; (4) identify the operational characteristics that make the hawala system vulnerable to financial abuse; and (5) consider the appropriate regulatory and supervisory options for informal funds transfer systems in Afghanistan.

Bibliographic Details

Main Author:	Munzele Maimbo, Samuel
Language:	English en_US
Published:	Washington, DC: World Bank 2003-08
Subjects:	MONEY USE & MOVEMENT, MONEY LAUNDERING, ILLEGAL ACTION, FUNDS TRANSFER, FINANCIAL SERVICES, EMERGENCY RELIEF, HUMANITARIAN AID, DEVELOPMENTAL BENEFITS, NONGOVERNMENTAL ORGANIZATION, FINANCIAL INSTITUTIONS, DEVELOPMENT FUNDS, REGULATORY FRAMEWORK, SUPERVISION PLANS, FUNDS TRANSFER SYSTEMS ACCOUNTING, ACCOUNTING RECORDS, BANK ACCOUNTS, BANKING SECTOR, BANKING SYSTEM, CASH TRANSACTIONS, CASH TRANSFERS, CENTRAL BANK, COMMERCIAL BANKS, COMPETITORS, CONFIRMATION PROCESS, COUNTERPART, COUNTERPARTY, CURRENCY EXCHANGE, DEALERS, DEFAULT RISK, DEPOSITS, EXCHANGE SERVICES, EXPORTS, FINANCIAL AUTHORITIES, FINANCIAL FLOWS, FINANCIAL MANAGEMENT, FINANCIAL SECTOR, FINANCIAL SYSTEMS, FINANCIAL TRANSACTIONS, FOREIGN EXCHANGE, FUNDS TRANSFER SYSTEMS, FUNDS TRANSFERS, INTERNATIONAL BANKING, INTERNATIONAL BANKS, INTERNATIONAL PAYMENTS, INTERNATIONAL TRADE, LAWS, LAWYERS, LOCAL CURRENCY, MICROFINANCE, MONEY MARKET, MONEY TRANSFERS, NONGOVERNMENTAL ORGANIZATIONS, OPERATING EXPENSES, PAYMENT INSTRUCTIONS, PAYMENT SYSTEMS, RESERVES, SAFEKEEPING, STATE BANKS, TAX EVASION, TELECOMMUNICATIONS, THIRD PARTIES,
Online Access:	http://documents.worldbank.org/curated/en/2003/08/2613565/money-exchange-dealers-kabul-study-hawala-system-afghanistan https://hdl.handle.net/10986/15087
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