Definition

A method of transferring money without using traditional banking systems, often based on trust and used in Islamic communities.

Example

Many people use hawala to send money to their families abroad without going through banks.

Conversation

Have you heard about the hawala system for transferring money?

Yeah, I think it’s quite interesting how it works without any formal records.

Right? It relies so much on trust between people.

Exactly, and that makes it unique compared to traditional banking.

Synonyms & Antonyms

Root Explanation

Hawala originates from Arabic "hawāla" (meaning transfer or to transfer). It refers to a system of transferring money without the physical movement of cash, often used in informal networks.

Memory Tip

Think of the Arabic word for transfer, 'hawāla', to remember that 'hawala' is a method of transferring money.

Visually Confused Words