Do
you know what HAWALA is??
“HAWALA”, a word is making headlines very often.
Hawala means ‘TRUST’ Hawala is also known as HUNDI is an informal value
transfer system based on performance and honor of money broker. Simply Hawala
is a system or agency of transferring money based on trust, whereby money can
be made available internationally without actually moving it or leaving a
record of the transaction. It involves money transfer without the knowledge of
the Reserve Bank of India and the Law Enforcement Agencies.
WHY
IS HAWALA USED??
Because of the number of the people involved it’s
tough to collect evidence and prove it is the court. It can be used in the
court to evade taxes, beat exchange rates, to transfer Black money. There are
some reasons behind of Hawala used they are:-
1.
The commission rates for transferring
money through Hawla are quite low.
2.
No requirement of any ID proof and disclosure
of source of Income is there.
3.
It has emerged as a reliable and
efficient system of remittance.
4.
As there is no physical movement of
cash, Hawala operators provide better exchange as compared to the official
exchange rates.
5.
It is simple and hassle free process
when compared to the extensive documentation being done by the bank.
6.
It is the only source to transfer
unaccountable income.
OTHER
FUND WIRE SYSTEM FOR MONEY LAUNDERING
CHIPS: - Clearing House Interbank
Payments System. An interbank payments system is related to the international
trade. CHIPS is used for the transfer of international trade Dollar.
CHAPS: - Clearing House Automated
Payments System. Operated by bankers clearing house of London. CHAPS is used
for interbank messaging and wire transferring involving British Pounds.
BOJNET: - Electronic wire transfer
system overseen by the Bank of Japan.
THE PUNISHMENT
FOR MONEY LAUNDERING
U/s. 4, PMLA, (Prevention of
Money Laundering Act.)
Rigorous punishment for not less than 3 years but
may extend to 7 years or in some cases , even up to 10 years a person also have
to pay a fine of Rs. 5 Lakh.
