Informal money transfer networks increasingly used for crime, FATF says

Once primarily used for laundering proceeds from crimes such as drug trafficking and smuggling, these networks are now also handling funds derived from fraud, cybercrime, terrorist financing, illegal gaming, and organized crime. The FATF report, compiled with input from member states, highlighted the increasing involvement of professional service providers, including lawyers, accountants, auditors, consultants, and real estate agents, in facilitating these schemes.

Furthermore, the report noted that advancements in technology, such as encrypted communications, fintech, anonymity-enhancing tools, and the growing use of cryptocurrency, have transformed informal money-transfer networks. These technologies have made the networks faster, more opaque, and more resilient to detection. Consequently, underground banking and money laundering operations based on these informal systems have become increasingly professionalized, with some functioning like sophisticated businesses.