Summary
This empirical study of the informal banking or "hawala" systems that operate in the Greater Toronto Area (GTA) relied on interviews with GTA residents of Afghani, Pakistani, or Indian origin. Following general observations regarding financial agents under the hawala system, this report focuses on its operation conducted by Afghani, Pakistani, and Indian financial agents. Although reluctant to share some information about their business, interviewees were concerned that the importance of their business to financial transactions in their cultures be respected and not outlawed or overly regulated. This report recommends the creation of a Self Regulatory Organization that consists of the financial agents and other agents that offer other financial services that can assist the government and the financial agents.
Contents
I. 1. Introduction and objective –- 2. Methodology –- 3. Assumptions –-
II. 4. General Observations Regarding Financialgents –- 4.1. Legal status –- 4.2. Trust -– 4.3. Primary/secondary business -– 4.4. Registration -– 4.5. Recordkeeping –- 4.6. Advertising -– 4.7. Bank involvement -– 4.8. Fees/flow of funds -– 4.9. Education/ language skills -– 5. Afghani financial agents -– 5.1. Destination -– 5.2. Primary business and registration -– 5.3. Record keeping -– 5.4. Fees/flow of funds -– 5.5. Bank involvement -– 5.6. Advertising and affiliations -- 5.7. Competition/ collaboration –- 5.8. Transaction process -– 6. Pakistani financial agents -– 6.1. Primary business and registration –- 6.2. Destination -– 6.3. Recordkeeping -– 6.4. Advertising/affiliations -– 6.5. Competition/collaboration -– 6.6. Fees -– 6.7. Flow of funds – 6.8. Affects of 9/11 -– 6.9. Transaction process -– 7. Indian financial agents –- 7.1. Destination -– 7.2. Primary business and registration -– 7.3. Record keeping –- 7.4. Fee/flow of funds -– 7.5. Advertising/affiliations -– 7.6. Competition/collaboration -– 7.7. Bank involvement –- 7.8. Transaction process –- 8. Clients –-
III. 9. Conclusions/Recommendations.