Global watchdog warns informal money-transfer networks are increasingly abused

The Financial Action Task Force released a study indicating that informal money-transfer channels, including hawala and similar providers, have become a widespread global problem. While historically linked to cash-based crimes like drug smuggling, these networks now handle proceeds from fraud, cyber attacks, terrorist financing, illegal gambling and organized crime. The report points to a rising involvement of professional service firms—lawyers, accountants, auditors, consultants and real-estate agents—in supporting the illicit flows.

Advances in encrypted messaging, fintech platforms, anonymity tools and cryptocurrency have further accelerated and obscured transactions. The FATF urges governments and private companies to intensify efforts to detect and disrupt these increasingly professionalised operations.