Exactly
Hawala has been around since the 8th century. Humans will always find ways to navigate around restrictions.
Discussion
Here is how https://www.youtube.com/watch?v=3eXtUyb6Fu0
So, ive been reading your notes in this thread about cash moving through airports... I was under the impression that hawala is a method to move money that involved accounting tricks on import and export networks and no money actually crosses borders. Youre talking about direct remittances, do people who do it often just use the term "hawala" shorthand for all remittances through informal networks?
It’s both in this case.
Somali Hawalas are both informal and formal.
This post was in response to a post regarding Somali men moving millions of dollars through American airports.
Somali Hawalas in America were made illegal in 2001 after 9/11. When that happened, Somali Hawalas adopted the method you described, using merchants and businessmen, until the American government gave them back their license.
Now Somali Hawalas collect the money physically and move it through airports to Banks in Dubai. American Banks still refuses to bank Somalis Hawalas, so the cash is moved physically. However they do it legally and are given approval letters from the US treasuries.