Thanks for the "Hwala" banking information. Hereâs a definition of it from a respected British newspaper: "âHwalaâ banking - a system of credit exchange that has no need of telexes or scrambled data links, merely people making phone calls to trusted counterparts in other countries, very likely using opaque language.â I now understand. When Refco tanked, taking RefcoFX with it, the FXCM crew in Mumbai starting working the phones in code to ensure that RefcoFX customers could continue to trade. That explains why the RefcoFX customers paid FXCM $650,000 monthly to maintain the RefcoFX trading platform. Big long-distance phone bill. And the code the callers used confirms my comment â which had been merely a guess â that a âdouble-secret credit facilityâ was in place. Youâd have to use code to tap a double-secret credit facility, wouldnât you? Itâs all so cloak and dagger, what fun! But what if the bankruptcy judge gets wind of this, wonât it blow the cover of FXCMâs âHwalaâ operatives?
Actually, Hwala does not involve any actual cash transfer, it is book entries at either end - why gosh, that would be a perfect match................