The FATF highlights that informal money-transfer networks, including hawala and other HOSSPs, are a widespread global phenomenon that is growing.

Hawala networks are rapidly digitalising, with cash-based, face-to-face transfers increasingly supplemented or replaced by digital technologies to coordinate and settle illicit funds.

Advanced methods now use value-added services and stablecoins (like USDT, USDC, and DAI) to settle balances between operators, sometimes replacing traditional cash or bank-based settlement.

Professional money launderers are employing artificial intelligence to generate patterns that appear legitimate, including structuring, mule routing, and rapid crypto-to-fiat conversions.

Digital hawala enables cross-border operations with less physical presence and greater flexibility, though final settlement often remains in cash or via trade-based mechanisms.

Underground banking and HOSSP-based laundering have become more professionalised, with some networks functioning like sophisticated businesses.

Digital hawala now uses encrypted messaging, cloud storage, social media, lending apps, gaming platforms, and other tools to onboard clients, coordinate transfers, and conceal activity.

Encrypted communications, fintech innovations, anonymity tools, and the adoption of crypto and other new tech have made informal networks faster, more opaque, and more resilient.

While no country-specific actions are detailed, the overarching call is for strengthened AML/CFT measures to address digital hawala.

Hawala apps and integrated ecosystems are used to manage onboarding, coordination, and cross-border settlement across jurisdictions with limited visibility.

Illicit networks now process funds from a broader range of crimes—including fraud, cybercrime, terrorist financing, illegal gaming, and international organized crime.

Professional service providers such as lawyers, accountants, auditors, consultants, and real estate agents are increasingly involved in facilitating these informal laundering schemes.