The Impact Of Hawala On The Middle East, North Africa, South Asia

The Merriam Webster dictionary defines the noun “bank” as “an establishment for the custody, loan, exchange, or issue of money, for the extension of credit, and for facilitating the transmission of funds.” In essence it is an institution that serves as a medium of flow of funds between users and savers. A bank is a financial institution that links the flow of funds from savers to users and back. For the purpose of this audit report we will broadly classify banks into two major categories: commercial banks and investment banks.

Furthermore, upon swiping the card the processing machine interprets the code extracting the data routing it to the proper bank to obtain approval. The data can process around the world in 120 milliseconds. Nevertheless, making cards frequently compromised due to the thirty-second window which the cards information is not encrypted. Hackers once tapped into the system use this gateway to extract consumer 's information each time a debit or

The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.

Banks are institutions in which people put their money for safekeeping, to save, to use to pay their bills, or to earn interest on. Banks are allowed to use that money to make loans and earn interest for the bank's’ owners. Different types of banks offer different types of services. For example, commercial banks originally just served businesses, and savings banks and credit unions were used by individuals, especially those who couldn’t qualify for loans at regular banks. This is no longer the case. Although commercial banks and thrift institutions used to serve different purposes, today they all offer many of the same types of services including bank accounts, loans, credit, certificates of deposits (CDs), and much more.

If you consider banking systems, starting at their front door-- ATMs, direct deposit, pay-by-phone, debit card and credit card purchases, all card payment transactions, electronic checks, and wallets--banks have been the central hub for the payments industry.

A. Was the uniting of investment and commercial banking so that bankers could more readily transfer depositors money.

Lending institutions have been around since the late 1700’s. Banks are establishments that are authorized by the government to accept deposits, pay interest on deposits, clear checks, make loans, act as an intermediary in financial transactions and provide other financial services to customers.

Just like drug trafficking, human trafficking can be linked to money laundering as well. However, unlike drug trafficking, human trafficking is a lucrative enterprise but both go through the same process. The money earned and collected by traffickers is made into legitimate money and then used to invest in businesses, which can be later used as front companies. The moving of money can make difficult to combat these transnational crime

Banks take deposits from savers and pay interest on these accounts. They receive interest on loans when they pass these funds on to borrowers. The spread between the rate they pay for funds and the rate they receive from borrowers is where their profits are derived from. This practice of combining deposits from many sources which can be lent to many borrowers forms a interchange of funds

The Bank Person- The two main types of depository institutions are Credit Unions and Commercial Banks. The US bank is a commercial bank and we offer many financial services to the public. What do you need to know?

Financial institutions have the ability to serve as agents for its clients providing financial services. These services include, but are not limited to the facilitation of money, such as credit; investments-related services; stock exchange; and any other accounting or finance

Approval and Authentication- wire and ACH payments are programmed to require one or more approval to maximize fraud protection

Cross border interbank payment systems are payment systems that deal with the real-life processing of cross-border transfers within banks, throughout the different markets in the world. Hence, they are defined as transactions that affect payment systems, including cash, of banks located in at least two countries.

In India, the term black money refers to the illegally procured income by the owner in the black market, such as drug trafficking, weapons trading, terrorism, goods supply to black market and lastly corruption which includes giving and taking bribes and illegal commissions, as this income is earned in the black market so evasion of custom duty, excise duty, corporation and income tax take place and it is used for fulfilment of personal needs and luxury. Black money is moved by the method called Hawala. Under this method, hawaladars take the money from the sender in country A and inform their correspondent in country B to hand over the amount to the recipient in country B

Money laundering is the processing of these criminal proceeds to disguise their illegal origin. This process is of critical importance, as it enables the criminal to enjoy these profits without jeopardizing their source.