[1][2] Their use as global networks for financial transactions spread as expatriates from the original countries settled abroad.
Depending on the ethnic group, IVTS are called by a variety of names including, for example, hawala (Middle East, Afghanistan, Indian Sub-Continent); fei ch’ien (飞钱 or "flying money"; China); phoe kuan (Thailand);[3] and Black Market Peso Exchange (South America).
Another method of balancing the books is to under-invoice goods shipped abroad, so that the receiver can resell the products at a higher market price.
IVTS operations are also used by legitimate companies, traders, organisations, and government agencies needing to conduct business in countries with basic or no formal financial systems.
In some countries, IVTS-type networks operate in parallel with formal financial institutions or as a substitute or alternative for them or.