EFTA02522052.pdf

From: Sent: Monday, September 10, 2012 8:53 PM To: jeevacation@gmail.com Subject: FW: Do you know about hawala/ hundi? FYI<=p> From: David Smith Sent: Thursday, September 06, 2012 3:02 PM To: Subject: Do you know about hawala/ hundi? Dea <=p> If you don't, I jus= thought of a nifty use of "free global tech" that would play =0 Bill's interest in disruptive tech being used for pro-poor activit=es, and might tie very much to Urban's goals (under the Integrated department) across multiple dimensions. I could explain it in fiv= minutes on the phone, and then if of interest could spend the 2 hours nee=ed to write it up. David &=bsp; 6 Sep 12 Here's the quickie =ntro: I have a feeling that =f one could use a formal an audited password system, one could eliminate t=e fraud risk without losing the system's efficiencies. EFTA_R1_01659836 EFTA02522052 The figure shows how Hawala works: (1) A =customer (A, left-hand side) approaches a hawala broker (X) =n one city and gives a sum of money (red arrow) that is to be transferred to a recipient (B, right-hand side) in another, usually foreign, ci=y. Along with the money, he usually specifies something like a password th=t will lead to the money being paid out (blue arrows). (2b) The hawal= broker X calls another hawala broker M in the recipient's city, and =nforms M about the agreed password, or gives other disposition instructions=of the funds. Then, the intended recipient (B), who also has been i=formed by A about the password (2a), now approaches M and tells hi= the agreed password (3a). If the password is correct, then M releases the transferred sum to B (3b), usually minus a sma=l commission. X now basically owes M the money that M had paid out t= B; thus M has to trust X's promise to settle the debt at a later date= After the September 11 terrorist attacks <http://en.wikipedia.org/wiki/September_11,_2001_attacks> , the American government suspected that =ome hawala brokers may have helped terrorist organizations to transfer mon=y to fund their activities. The 9/11 Commission <http://en.wikipedia.org/wiki/9/11_Commission> Report has since confirmed that the bulk of the=funds used to finance the assault were not sent through the hawala system,=but rather by an official inter-bank wire transfer to a SunTrust Bank <http://en.wikipedia.org/wiki/SunTrust_Bank> in Florida, where two of the conspirators had opened a pe=sonal account. However as a result of intense pressure from the U.S. autho=ities, widespread efforts are currently being made to introduce systematic anti-mone= laundering initiatives on a global scale, to better curb the activities o= the financiers of terrorism and those engaged in laundering the profits o= drug smuggling. David Smith CEO, Affordable Housing 1=stitute E: Chairman, Recap Real Esta=e Advisors E: </=> T: C: Skype: 2 EFTA_R1_01659837 EFTA02522053 AFFORDABLE HOUSING INSTIT=TE RECAP REAL ESTATE ADVISOR= &nbs=; DISC=AIMER: E-mails and any files transmitted with them contain confidential an= proprietary information and are solely for the use of the intended recipient. If you are not the intended recipient, please return t=e e-mail to the sender and delete it from your computer. Email transmissio= cannot be guaranteed to be secure or error-free. The contents of e- mails =nd any files transmitted with them may have been changed or altered without the consent of the author. Any ac=ion taken or omitted to be taken in reliance on the contents of any email =r its attachments is at your own risk and to the fullest extent permitted =y law Recap Advisors, LLC and affiliates accepts no responsibility or liability to you.=/o:p> 3 EFTA_R1_01659838 EFTA02522054