BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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FERA
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FEMA
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FRBMA
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AFSPA
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Detailed explanation-1: -Hawala was a criminal offence under Section-8(1) and 9(1) (b) and (d) of the Foreign Exchange Regulation Act, 1973 (FERA, 1973).
Detailed explanation-2: -Under the Prevention of Money Laundering Act (2002), hawala is illegal if the proceeds from such transactions are used for money laundering.
Detailed explanation-3: -Financial Exchange Regulation Act (FERA), 1973 FERA provides detailed legal prohibitions on the hawala market.
Detailed explanation-4: -There is no central authority that controls hawala transactions. The system is run by hawala brokers, based on trust and reputation.
Detailed explanation-5: -Hawala is an informal method of transferring money without any physical money actually moving. It is described as a “money transfer without money movement.” Another definition is simply “trust.” Hawala is used today as an alternative remittance channel that exists outside of traditional banking systems.