Following the migrant money trail
The Wall Street Journal - 12/30/2015
“If someone doesn’t go by the rules, he will be ostracized forever,” said Nikos Passas, a Northeastern University professor who has studied hawala. Moreover, a hawaladar’s family and legitimate business could suffer if he defrauded a customer, he added.
Mr. Passas cited the case of a U.K. hawaladar who gambled away customers’ money, causing losses to fellow brokers in Pakistan and Britain. The broker was kicked out of the network and the other brokers shared the losses, he said. In case of disputes between brokers, an elder hawaladar or a committee hears out the two sides and settles the dispute.