HMRC urges informal money transfer businesses to act against criminal misuse

• An estimated £2 billion is laundered annually through informal money transfer networks in the UK
• HM Revenue and Customs (HMRC) launches campaign to protect communities, combat financial crime, and support lawful businesses

Criminals are exploiting informal money transfer services across the UK to launder around £2 billion each year, hiding the proceeds of serious organised crime that damages communities.

HMRC is calling on businesses that provide these services—commonly used by diaspora communities to send money abroad—to register for anti-money laundering supervision to safeguard themselves from being exploited by criminals.

One of the most widely used informal money transfer methods is Hawala, which enables funds to be sent internationally without physically moving cash across borders. Instead, Hawaladars (operators) rely on a trust-based network to ensure money reaches family members in countries where traditional banking services may be limited or unavailable.

All businesses offering these services must register with HMRC to operate legally. Registration ensures they implement adequate controls to prevent criminal exploitation.

Operators can learn more and register for anti-money laundering supervision through GOV.UK.

Louise MacDonald, HMRC’s Deputy Director for Economic Crime, commented:

“Informal money transfer systems like Hawala are crucial for many people supporting relatives in regions where conventional banking is restricted. These essential services must be protected from abuse by criminals.

“Money laundered through these networks finances serious organised crime, which directly harms the very communities these services aim to support.

“By registering with HMRC, businesses can protect their operations, shield their communities, and comply with the law.”

Failure to register can lead to civil fines, criminal charges, and business closure.

HMRC’s campaign, running until the end of this month, uses community radio, digital adverts, and local outreach to help operators understand their legal responsibilities.

This effort follows joint visits by HMRC and the National Crime Agency (NCA) to over 40 premises last month, supporting Hawaladars in meeting their legal obligations.