By PAUL O’DONOGHUE, Senior Correspondent
AN estimated £2 billion ($2.6 billion) is laundered annually through informal money transfer systems in the UK, according to HM Revenue and Customs (HMRC).
In response, the agency has launched a new campaign aimed at curbing this practice. It is urging operators to register with government bodies.
Businesses that fail to register face “civil penalties, criminal prosecution, and closure,” HMRC warned. The campaign, running until the end of this month, includes community radio broadcasts, digital ads, and local outreach. These efforts aim to help operators understand their legal obligations.
“Criminals exploit informal money transfer services in the UK to launder an estimated £2 billion annually, hiding the proceeds of serious organized crime that harms communities,” HMRC said.
One of the most common informal services is Hawala. This system allows people to send money abroad without physically moving cash. Instead, Hawaladars use a trust-based network to ensure funds reach family members in countries with limited banking access.
UK money transfer businesses urged to register
HMRC emphasized that all businesses offering these services must register to operate legally. “Registering helps ensure that they have proper controls in place to prevent criminals from exploiting their services,” the agency explained.
Businesses can find out who is liable [HERE] and register for anti-money laundering supervision [HERE].
Louise MacDonald, HMRC’s Deputy Director for Economic Crime, said it is vital to protect these networks. “Informal money transfer networks like Hawala help people support family members in parts of the world where conventional banking is limited. We must protect these essential services from criminal exploitation,” she stated.
“When criminals launder money through these networks, it funds serious organised crime that directly harms the communities these services aim to support. By registering with HMRC, businesses can safeguard their operations and protect their communities,” she added.
This campaign follows joint visits by HMRC and the National Crime Agency (NCA) to over 40 premises last month. These visits aimed to educate Hawaladars about their legal responsibilities.
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