Nizamabad: On Wednesday, October 18, 2023, the Task Force police in Nizamabad, India, busted a hawala racket and seized Rs 63.40 lakh from three persons. According to ACP Kiran Kumar, the Task Force personnel raided a house based on reliable information and seized the cash. The currency bundles, all of Rs 500 denomination, were hidden inside a locker in the house. The police registered a case and investigation is underway.
Hawala is an informal money transfer system that is often used to transfer money illegally or without paying taxes. It is based on a network of trusted individuals and businesses who can transfer money without the use of formal banking channels. Hawala can be used for legitimate purposes, such as sending money to family and friends overseas, but it is also often used for illegal activities, such as money laundering and drug trafficking.