Informal money transfer businesses to register

HMRC has launched a campaign urging informal money transfer businesses to register for anti-money laundering supervision to protect themselves from criminal exploitation.

Criminals are exploiting these businesses to launder an estimated £2bn annually according to the tax authority. Hawala is a common type of these services. It lets people send money abroad without cash physically crossing borders. Instead operators (hawaladars) use an informal trust-based network to ensure the money reaches family members in countries where regular banking is limited.

All businesses providing these services must register with HMRC to operate legally.

Louise MacDonald HMRC’s deputy director for economic crime said: ‘Informal money transfer networks like hawala enable people to support family members in parts of the world where conventional banking is limited. These are vital services that we want to protect from criminal exploitation. When criminals launder money through...