An
informal value transfer system (IVTS) is any system, mechanism, or network of people that receives
money for the purpose of making the funds or an equivalent value payable to a third party in another geographic location, whether or not in the same form. Informal value transfers generally take place outside of the conventional
banking system through
non-bank financial institutions or other
business entities whose primary business activity may not be the transmission of money. The IVTS transactions occasionally interconnect with formal banking systems, such as through the use of
bank accounts held by the IVTS operator.