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In some countries, IVTS-type networks operate in parallel with formal financial institutions or as a substitute or alternative for them or. Besides citizens of the host country, people (legally or illegally) residing in the host country from foreign countries may prefer or need to use IVTS in lieu of
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The sender gives money to an IVTS agent and their counterpart in the receiver region/country acts as deliverer of this money. The sender calls or faxes instructions to his counterpart and the money gets delivered in a matter of a few hours. In the past, the message could be delivered using couriers,
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IVTS are used by a variety of individuals, businesses, organisations, and even governments to remit funds domestically and abroad. Expatriates and immigrants often use IVTS to send money back to their families and friends in their home countries (for workers who worked abroad) or foreign countries
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Their use as global networks for financial transactions spread as expatriates from the original countries settled abroad. Today, IVTS operations are found in most countries. Depending on the ethnic group, IVTS are called by a variety of names including, for example,
287:. (Funds sent through traditional transfers are converted to the currency of the recipient’s country; the fee charged for exchange rate conversion is set by the institution. IVTS operators, who speculate in currency exchange rates, charge lower fees);
258:(for merchants who need extra money to start a business). IVTS operations are also used by legitimate companies, traders, organisations, and government agencies needing to conduct business in countries with basic or no formal financial systems.
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using banks involves fees charged to the sender and receiver, may take from two to seven days to complete, and may be delayed or lost. Funds moved through IVTS are usually available within 24 hours, with minimal or no fees charged to the
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for the purpose of making the funds or an equivalent value payable to a third party in another geographic location, whether or not in the same form. Informal value transfers generally take place outside of the conventional
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An informal value transfer system is an alternative and unofficial remittance and banking system, that pre-dates current day modern banking systems. The systems were established as a means of
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Individuals or groups engaged in operating IVTS may do so on a full-time, part-time, or ad hoc basis. They may work independently, or as part of a multi-person network. IVTS are based on
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entities whose primary business activity may not be the transmission of money. The IVTS transactions occasionally interconnect with formal banking systems, such as through the use of
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in the opposite direction. Another method of balancing the books is to under-invoice goods shipped abroad, so that the receiver can resell the products at a higher market price.
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Because IVTS provides security, anonymity, and versatility to the user, the systems can be also used for supplying resources for doing illegal activities. Following the
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the host country and the receiving country have no diplomatic ties or the host country actively discourage the sending of money to the receiving country.
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on the United States, IVTS have come under increased scrutiny and regulation in many countries as a result of pressure from the United States.
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the constant change in the world political environments, unsatisfiable payment systems, and/or a rapid continuously changing financial sector;
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transfers that are more efficient, reliable, and cheaper than formal financial institutions. (For example, a
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with men or even animals (such as pigeons). Settlements are made either with a private delivery service or
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within villages and between villages. It existed as far back as over 4000 years ago and even more.
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to avoid mandatory reporting of large transactions from financial institutions to governments.
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a lack of easily accessible formal financial institutions in remote areas of some countries;
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U.S. Dept. of the
Treasury March 2003 Advisory (#33) to financial institutions re IVTS.
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646:"A Background Report on the Operation of Informal Value Transfer Systems (Hawala)"
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478:"Frontline Special Report: drug wars — the Black Peso Money Laundering System"
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415:"Cuneiform tablet: account of barley and date disbursements, Ebabbar archive"
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684:"Informal Funds Transfer Systems: An Analysis of the Informal Hawala System"
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to ensure anonymity since there may be minimal or no records maintained; or
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formal financial institutions for various reasons as described below:
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El Qorchi, Mohammed; Maimbo, Samuel
Munzele; Wilson, John F. (2003).
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Hawala. An
Informal Payment System and Its Use to Finance Terrorism
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172:) is any system, mechanism, or network of people that receives
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726:, by Sebastian R. Müller (Broschiert – December 2006),
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National
Institute of Public Finance and Policy (India)
621:"Designing Policies in the Presence of Hawala Markets"
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Almost all of this article comes from this document.
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619:Rao, R. Kavita; Tandon, Suranjali (January 2015).
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215:(Middle East, Afghanistan, Indian Sub-Continent);
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443:"Terrorism-Criminal Nexus Non-banking Conduits"
402:Click on 'context' tab to view relevant details
655:. Archived from the original on 5 October 2011
509:"Next Door Neighbors: Somali — Money Transfer"
380:"Ancient Languages: Sumerian Cuneiform Tablet"
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653:Centre for Applied South Asian Studies
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696:from the original on 9 October 2007
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545:"Hawala Tech and Banks in Somalia"
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582:(November-December 2003): 49–57.
441:Sandhu, Harjit (11 March 2004).
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755:Informal value transfer systems
644:Ballard, Roger (6 April 2003).
290:to avoid paying transfer taxes;
283:to avoid paying higher foreign
221:(飞钱 or "flying money"; China);
39:Development finance institution
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183:non-bank financial institution
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20:Financial market participants
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760:Financial routing standards
514:Nashville Public Television
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193:held by the IVTS operator.
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420:Metropolitan Museum of Art
302:September 11, 2001 attacks
227:Black Market Peso Exchange
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673:: CS1 maint: unfit URL (
574:"Migration's New Payoff"
277:wire transfer of funds
360:Value transfer system
330:Correspondent account
140:Financial regulation
240:How does IVTS work?
44:Insurance companies
596:on 13 January 2015
543:(3 October 2010).
521:on 23 January 2015
385:Crocker Art Museum
740:978-3-86550-656-6
392:on 6 January 2014
229:(South America).
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105:Participants
700:23 November
659:23 November
635:23 November
600:20 November
554:19 November
525:19 November
493:19 November
457:19 November
426:19 November
396:19 November
253:Use of IVTS
155:Super angel
749:Categories
366:References
355:Remittance
218:fei ch’ien
588:0015-7228
483:Frontline
223:phoe kuan
185:or other
691:Archived
669:cite web
308:See also
187:business
181:through
197:History
95:Finance
738:
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345:Hawala
212:hawala
69:Trusts
694:(PDF)
687:(PDF)
649:(PDF)
624:(PDF)
446:(PDF)
350:Hundi
234:trust
174:money
77:Terms
736:ISBN
728:ISBN
702:2020
675:link
661:2020
637:2020
602:2022
584:ISSN
556:2020
527:2020
495:2020
459:2020
451:OSCE
428:2020
398:2020
335:FATF
170:IVTS
488:PBS
164:An
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