(p. 329 ) Index
(11) The word ‘hawala’ has been increasingly used as shorthand for all informal value transfer systems. There is an important distinction made in literature on informal economies between illicit and licit informal trade—activity that does and does not infringe criminal law. Prior to 9/11, in most financial jurisdictions (exceptions are India and Pakistan, where hawala has been illegal for some time), a distinction was made by law enforcers between ‘white hawala’ (the use of the hawala system to make legitimate international transfers, e.g. migrant remittances and legitimate trade transfers) and ‘black hawala’ (the use of the system for transfers that are considered illegitimate in most jurisdictions, for example a part of narcotics trafficking or fraud). But after 9/11, hawala has been increasingly presented in the media and the financial and law enforcement worlds as, at best, particularly vulnerable to use for illegitimate purposes, and at worst, expressly designed for illegitimate purposes. See Jost and Sandhu (2000).