Hawala networks rely on digital wallets to move illicit wealth: FATF

Modern Technology Upgrades Underground Banking Systems

A new report by the Financial Action Task Force reveals that traditional underground money channels are becoming highly professionalized. These networks now rely heavily on digital wallets, virtual assets, and fintech platforms to move billions of dollars across international borders.

Whistleblower Uncovers Secret Remittance Schemes in Oman

Authorities in Oman tracked down an unlicensed cross-border money transfer network operating through WhatsApp and mobile apps. The illegal operators offered low exchange rates and used fee-free digital payment channels like Raast to send funds directly to Pakistan.

Illegal Online Gambling Funds Laundered Through India

Indian officials uncovered a massive money laundering network tied to illegal online sports betting platforms. Organizers used panel operators, UPI transfers, and mule accounts to transfer illicit proceeds before reintroducing them as fake foreign investments.

Global Financial Task Force Urges Stricter Regulation

Over 80 percent of reporting countries identified underground banking systems as major channels for professional money laundering. The global watchdog urges nations to strictly license these service providers to eliminate regulatory blind spots and stop illicit money transfers.

This report shows how traditional underground banking systems are changing with modern financial technology. By using social media and digital wallets, these networks operate faster while hiding behind lower fees. Governments must strengthen digital banking monitoring to stop illegal money transfers effectively.

Also read: Deutsche Bank plans wider corporate banking push in Pakistan

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