it is an alternative money remittance system. This informal fund transfer (IFT), also known under the names of Hundi or Chitti, is an informal channel for transferring funds from one location to another through service providers ( hawaladars) regardless of the nature of the transaction and the countries involved.

Informal money transfer system originating in Pakistan.

an underground banking system based on trust whereby money can be made available internationally without actually moving it or leaving a record of the transaction; "terrorists make extensive use of hawala"

a bill of exchange or other debt obligation. Currently, used in developing coun-tries as a tool to execute foreign exchange transactions.

Lit: bill of exchange, promissory note, cheque or draft. Technically, a debtor passes on the responsibility of payment of his debt to a third party who owes the former as debt. Thus the responsibility of payment is ultimately shifted to a third party. Hawala is a mechanism for settling international accounts, by book transfers.