The Role of Hawala and Other Similar Service Providers in Money Laundering/ Terrorist Fin.
Hawalas and other similar service providers (HOSSPs) arrange for transfer and receipt of funds or equivalent value and settle through trade, cash, and net settlement over a long period of time. What makes them distinct from other money transmitters is their use of non-bank settlement methods. This typology seeks to provide a facts-based review of the extent of their vulnerability to money laundering and terrorist financing.
This typology reviews three major types of HOSSPs:
- pure traditional (legitimate) ones
- hybrid traditional (often unwitting) ones
- and criminal (complicit) ones