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After the horrible attacks on September 11, 2001, an ancient informal money
transfer system called hawala came under scrutiny for its possible
involvement in the financing. This book explores what other, similar informal
transfer systems exist, and what their percentage of total remittances is. After
an analysis of its competitors, hawala is further explained through a sample
transaction, followed by an insight on its bookkeeping. Later the institutional
framework is analyzed and, most important, its considerable incentives to the
customer are outlined. The work then tries to define the ideal...