FATF finds underground banking uses digital tools to launder money
The Financial Action Task Force reports that underground banking, hawala and similar service providers are now major channels for professional money laundering, with more than 80% of responding jurisdictions identifying them as principal techniques and some cases moving over EUR 500 million in months. Nearly 70% of respondents reported a shift to digital hawala using encrypted messaging, fintech, instant payments, stablecoins, AI tools and purpose-built apps. Networks are operating commercially across borders and enlisting professionals and businesses outside traditional finance, making laundering faster and harder to detect and prompting calls for licensing, stronger detection and better international coordination.
Underground banking uses digital tools to launder hundreds of millions
Context
The FATF collected evidence from more than 50 jurisdictions about money laundering. The report found a shift from cash to digital tools. Countries may next consider licensing, stronger detection and more cross-border coordination.
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