Investigating Professional Money Laundering, Underground Banking, and the Use of Hawala and Other Similar Service Providers

Paris, 3 September 2026 - Underground banking, hawala, and other similar service providers (HOSSPs) are long-standing value-transfer and other financial service systems whose operational practices vary by region and level of sophistication. They function as informal, decentralised networks that are distinct from, though sometimes interconnected with, the formal financial sector. While underground banking and HOSSPs may operate outside or alongside the regulated financial system and may serve legitimate remittance and value-transfer needs, they may also be exploited by criminal actors, including professional money launderers, to facilitate illicit financial activity.

Against this background, this report examines the roles, methods and typologies of underground banking and HOSSPs in professional money laundering, as well as the capabilities and responses of competent authorities to these phenomena.