What's hawala and hundi? Apparently, FIA have found tons of cash again

[Sunny786]

Source - https://arynews.tv/en/fia-seizes-currency-prize-bonds-rs680-million-karachi/

KARACHI: The Federal Investigation Agency (FIA) claimed to have seized currency and prize bonds amounting to Rs680 million in a raid on a shop at MA Jinnah Road on Monday night, ARY News reported.

According to FIA officials, the raid was conducted on the basis of information provided by two suspects named Muhammad Kamran and Muhammad Rizwan who have been arrested for their involvement in transferring money through illegal channels of hawala and hundi.

The FIA officials said the agency had previously recovered foreign currencies and prize bonds worth Rs410 million during a raid conducted following information provided by the suspects.

Before that, they said, Rs270 million worth of prize bonds and currencies were recovered from hidden lockers in a shop in Kharadar.

It is pertinent to mention here that FIA had recently arrested three suspects involved in transferring money through hawala and hundi.

Can someone explain what is hawala and hundi? And why do they carry so much cash in their shops? Why aren't Pakistanis using banks?

 

[WhenSultansBowled]

My understanding: (I could be wrong)

Hawala: I live in France and my friend Ali who lives next door wants to send 1000euros to Lahore. My brother lives in Lahore near Ali's family. Ali gives me 1000euros in France and I tell my brother to give equivalent cash in Rupias to Ali's family in Lahore. No banks, no comissions, everyone gets it done.

Hundi: Professional people who are not your friends and do the same job. They take your money from overseas and give money to your family in country of origin. Often with some commission. Their people are always equipped with semi rifles and ready to bring the ruckus if someone tries to rob them. etc.

 

[WhenSultansBowled]

Mr. Banker wants you to use their services to make money off you. Bankers lobby government agencies to stop Hawala/Hundis.

My 0,02€.

 

[jaspa888]

Hawala/Hundi encourages money laundering.

 

[Bewal Express]

This is how the crooked elite bring back their money.

Where did you get the money from to bring back to PK? err err err but no answer from the son Shabaz Sharif.

 

[the Great Khan]

was a way to send money without worrying about sood walay bankers back in the day..but now it has been corrupted because of the WOT and our lovely politicians,