Editing Hawala (section)

== Origins ==
The hawala system originated in India.<ref>{{Cite web| title=The Hawala Alternative Remittance System and its Role in Money Laundering| url=https://www.treasury.gov/resource-center/terrorist-illicit-finance/Documents/FinCEN-Hawala-rpt.pdf| publisher=| access-date=2016-10-16| archive-date=2016-12-28|archive-url=https://web.archive.org/web/20161228041941/https://www.treasury.gov/resource-center/terrorist-illicit-finance/Documents/FinCEN-Hawala-rpt.pdf|url-status=live}}</ref> In 2003 Hawala as a legal concept was documented, finding evidence of Hawala reaching back to 1327, in a publication by Matthias Schramm and Markus Taube, with the title "Evolution and institutional foundation of the hawala financial system".<ref>{{Cite journal |last1=Schramm |first1=Matthias |last2=Taube |first2=Markus |title=Evolution and institutional foundation of the hawala financial system |journal=[[International Review of Financial Analysis]] |date=1 January 2003 |volume=12 |issue=4 |pages=405–420 |doi=10.1016/S1057-5219(03)00032-2 |issn=1057-5219}}</ref><ref>{{Cite news |last1=Mukherjee |first1=Andy |title=The Centuries-Old Financial System Better Than DeFi |url=https://www.bloomberg.com/opinion/articles/2022-06-20/defi-can-t-hold-a-candle-to-the-centuries-old-trust-based-system-called-hawala |access-date=21 June 2022 | publisher=Bloomberg News |date=20 June 2022 }}</ref> 

It has been speculated that "Hawala" itself influenced the development of the [[Agency (law)|agency]] in [[common law]] and in [[civil law (private law)|civil laws]], such as the ''aval'' in [[Law of France|French law]], the [[:pt:aval|aval]] in [[Portuguese law]], and the ''avallo'' in Italian law. The words ''aval'' and ''avallo'' bear a similarity to ''hawala,'' and the context of intensive trade between Italian cities and the Muslim world suggests a possible link.<ref>{{Cite journal |last=Badr |first=Gamal Moursi |title=Islamic Law: Its Relation to Other Legal Systems |journal=[[American Journal of Comparative Law]] |volume=26 |issue=2 [Proceedings of an International Conference on Comparative Law, Salt Lake City, Utah, February 24–25, 1977] |date=Spring 1978 |pages=187–98 |doi=10.2307/839667 |jstor=839667}}</ref> The transfer of [[debt]] was "not permissible under [[Roman law]] but became widely practiced in medieval Europe, especially in [[commercial transaction]]s", potentially borrowing from hawala. [[Agent (law)|Agency]] was also "an institution unknown to Roman law" as no "individual could conclude a binding contract on behalf of another as his agent". On the other hand, Islamic law and the later common law "had no difficulty in accepting agency as one of its institutions in the field of contracts and of obligations in general".<ref>{{Cite journal|title=Islamic Law: Its Relation to Other Legal Systems|first= Gamal Moursi|last=Badr|journal= The American Journal of Comparative Law|volume=26| issue=2 |date=Spring 1978|pages=187–98 [196–8]|doi=10.2307/839667 |jstor=839667}}</ref> The claims about the Islamic origins of hawala have later been challenged by Cinar.<ref>{{Cite journal |last=Çınar |first=Ali Ekber |date=2022-04-15 |title=Situating an Informal Funds Transfer System in Islamic Legal Theory: The Origin of Hawala Revisited |url=https://iupress.istanbul.edu.tr/en/journal/ilahiyatjournal/article/situating-an-informal-funds-transfer-system-in-islamic-legal-theory-the-origin-of-hawala-revisited |journal=Darulfunun Ilahiyat |doi=10.26650/di.2022.33.1.1052681|url-access=subscription }}</ref>