Get Menafatf Best Practices On Hawala1.doc - Menafatf

The hawala system can also be used for other criminal purposes. This means that there is a risk that legitimate money that is intended, for example, for use in state-funded aid projects, may end up in the same pool as illegal funds upon settlement if the hawala system is used to transfer these funds.

The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing. The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action.

It is believed that Indian, Arabic and Muslim traders originated Hawala in India in the eighth century as a system to protect themselves against theft. It was the main form of transferring money before banking became more modern in India.

The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing. The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action.

Hawala provides anonymity in its transactions, as official records aren't kept and the source of money that is transferred can't be tracked. Because money laundering aims to hide the source of cash that is generated from illegal activities, hawala is often used as a system for money laundering.

The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. It sets international standards that aim to prevent these illegal activities and the harm they cause to society. Find out more about the issues that the FATF is working on, such as: Methods and Trends.

The FATF plays a central role in global efforts to combat terrorist financing, through its role in setting global standards to combat terrorist financing, assisting jurisdictions in implementing financial provisions of the United Nations Security Council resolutions on terrorism, and evaluating countries' ability to ...