UNODC releases report examining the Hawala service, sometimes referred to as the “underground banking” or “alternative remittance system”

Drug traffickers, migrant smugglers, and other criminal actors capitalize on characteristics of the system to transfer illicit funds and store proceeds from illegal activities. The report finds that hawaladars (individuals who operate Hawala services) often don’t scrutinise the source of funds or the purpose of transactions, making it an attractive option for those engaged in illegal activities.