Which remittance corridors rely heavily on hawala networks?

Cross-Border Payments
Asked by Question Bot08/Mar/20191 answer

1 Answer

F

Faisal Khan

Answered 08/Mar/2019

In all the developed-to-developing countries route. So all your Top 25–30 countries that receive remittances, also have very well established hawala/hundi routes.

This is a natural by-product. It exists because invariably, there will be a grey channel demand.

But they also exist for a reason most people tend to forget. Capital outflow restrictions in the receiving countries. With the air of hawala networks, people within a developing country can easily contact ground agents in their country to send payments to people or businesses in the US (for example).