A new FATF (global anti-money-laundering watchdog) report published in Paris on 3 September 2026 says underground banking, hawala and other similar service providers, known as HOSSPs, are increasingly enabling illicit finance. Some cases involved more than EUR 500 million laundered within a few months, while more than 80% of reporting jurisdictions identified these systems as principal professional money-laundering channels or techniques. The report says unregistered HOSSP activity is generally criminal in most countries and conflicts with FATF Standards calling for licensing or registration. It describes increasingly professionalised cross-border networks that use formal financial services, fintech, virtual assets, encrypted messaging and artificial intelligence, including emerging digital hawala operations. The findings cover criminal proceeds from drugs, fraud, cyber-enabled crime, terrorist financing, illegal gambling and transnational organised crime, and call for coordinated prevention, enforcement, financial inclusion and international cooperation.