Registering informal money transfer businesses

Posted on 1st April 2025 by Streets Business


Image to represent Registering informal money transfer businesses

HMRC has launched a campaign targeting informal money transfer networks like Hawala, aiming to combat money laundering and protect communities. Businesses must register for AML supervision or risk fines, prosecution, or closure.

It is estimated that some £2 billion is laundered annually through these networks in the UK. This is a practice that is exploited by criminals to conceal the proceeds of serious organised crime.

These networks, often used by diaspora communities to send money abroad, rely on informal, trust-based systems like Hawala. These systems allow money to be transferred without crossing borders physically, relying instead on local trust networks between operators, or Hawaladars, to ensure the funds reach recipients in countries with limited banking access.

HMRC urges businesses offering these services to register for anti-money laundering supervision to protect themselves from criminal exploitation. Registration ensures that businesses implement proper controls to prevent money laundering. Failure to register can result in civil penalties, criminal prosecution, or business closure.

The campaign aims to educate Hawaladars about their legal responsibilities through community radio broadcasts, digital advertising, and local outreach. The initiative follows recent joint visits by HMRC and the National Crime Agency (NCA) to over 40 businesses to help operators understand their obligations.

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 these networks, it funds serious organised crime that directly harms the very communities these services support.

By registering with HMRC, businesses can safeguard their services, protect their communities and operate within the law.”


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


Expert insight and news straight
to your inbox

Related Articles


Changes to online filing of accounts at Companies House

The Online Accounts and Company Tax Return (CATO) service is scheduled to close on 31 March 2026. ​ This service has enabled businesses to file their company accounts and tax returns simultaneously with both Companies House and HMRC. However, due to


Why flexible planning is advisable

Flexible planning is essential for adapting to uncertainty, responding to challenges, and seizing new opportunities. The world is unpredictable, and rigid plans can quickly become outdated. Whether in business or personal life, flexibility ensures


Women in leadership roles

The UK is making significant strides in promoting gender equality within its top companies. According to the latest FTSE Women Leaders Review, women now occupy nearly 43% of board positions across FTSE 350 companies, totalling 1,275 roles.

You might also be interested in...