The Financial Action Task Force (FATF) has published a new report entitled “Investigating Professional Money Laundering, Underground Banking, and the Use of Hawala and Other Similar Service Providers”, highlighting the growing use of underground banking, hawala and other similar service providers (HOSSPs) in facilitating money laundering and terrorist financing.

The report identifies the increasing professionalisation and sophistication of these networks, including the emergence of “money laundering as a service” and the growing use of digital technologies, virtual assets, fintech platforms and encrypted communication channels. FATF notes that more than 80% of reporting jurisdictions identified underground banking and HOSSPs among the principal channels or techniques used for professional money laundering.

Of particular relevance to the gambling sector, the report highlights the potential involvement of casinos and junket operators in facilitating professional money laundering schemes and identifies illegal gaming and gambling among the criminal activities associated with the misuse of underground banking networks.

The report provides case studies, risk indicators and good practices aimed at strengthening the ability of competent authorities and the private sector to detect, investigate and disrupt professional money laundering networks.

The full FATF report is available here.