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Comment by xeromal | Hacker News Reader

Kind of a tangent but I have some friends that are kurdish and that's how they transfer money to and fro the US and skirting whatever limits/regulations exist. They just give money to a money family in kurdistan and the money family here in the US hands it to them out of a restaurant or whatever. I've been fascinated with it since I knew it existed. It's all the same stuff with various coats of lipstick.

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Don’t they need to pay for the plane ticket?

No they mean that a family member in the US gives them some of their own money, but records it to a family ledger. At some other point funds or value will be transferred, but it isn't transferred within the family for every payment.

This is exactly what it is. I kind of dig it and I'm glad I know the name now

Someone posted a link in response to you, but no money actually crosses borders.

I think the best way to explain it is an example.

My contact needs to get money to his family across the world. I happen to have a cousin that I love and trust who lives there and runs a gas station. My contact gives me 10k USD + a fee and then I call my cousin and tell him to give 10k to the contact's family member if they give the right password. At the end of the year, I meet up with my cousin and I bring him some gold or other goods depending on what our deficits are to each other.

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