A global financial watchdog says misuse of informal transfer systems is increasing worldwide, exposing gaps in efforts to track illicit funds.
• Networks such as hawala and similar community-based services can move money quickly across borders without relying on conventional banks.
• While these systems provide essential access to finance for migrants and people underserved by formal institutions, authorities warn they can also be exploited for money laundering, fraud and terrorist financing.
• The watchdog is urging governments to improve registration, supervision and information-sharing without driving legitimate users toward unregulated channels.
• Regulators face a difficult balance: informal networks are often trusted, affordable and deeply embedded in local communities, particularly where banking access is limited.
• Stronger oversight, the report says, should be paired with clearer rules and practical compliance support for operators.
The findings add to international pressure on governments to modernize financial controls while preserving lawful remittance services relied upon by millions of people.