How does the hawala system work?

Synopsis

Governments are trying to cripple Islamic State finances, facing challenges due to the ancient payment system known as hawala. This system operates outside of traditional banking and is illegal in many countries, yet it remains widespread. The video provides an example of how hawala functions in everyday business, illustrating its significance in facilitating transactions without the oversight of formal financial institutions. The complexities of regulating such systems highlight the difficulties governments encounter in their efforts to combat the financial networks that support the Islamic State.