The Financial Action Task Force has published its previously approved assessment of how professional money launderers exploit underground banking, hawala and other similar service providers. The report finds widespread criminal misuse and growing convergence between traditional informal transfer networks and sophisticated laundering structures that combine encrypted communications, virtual assets, fintech platforms and formal financial accounts. Nearly 90% of surveyed jurisdictions reported the presence of these informal systems, while more than 80% identified them as a principal channel or technique for professional money laundering. The report updates settlement typologies to cover bilateral and network-based offsetting, transfers through cash, trade or commodities, formal financial channels and digitally based arrangements. It highlights regulatory asymmetries, fragmented definitions, limited risk data and difficulties tracing cross-border networks, particularly where legitimate and illicit funds are commingled. FATF calls for clear licensing and enforcement frameworks, system-wide disruption of laundering chains, stronger public-private intelligence sharing, centralized risk data, technology-enabled detection and deeper international cooperation, alongside proportionate financial inclusion measures for legitimate remittance users.

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