Criminal Gangs Used Hawala Networks to Launder Funds
Investigators uncovered a 25-country hawala system used by major criminal organizations to bypass banking oversight.
Updated on Sept. 21, 2026 in Financial Crime
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Criminal organizations have utilized the hawala money transfer system to bypass international financial regulations. Investigations identified a WhatsApp group with 532 members facilitating these illicit transfers across 25 countries.
Why it matters
Criminal groups rely on the informal hawala network to avoid reporting requirements and financial scrutiny. This system enables cartels to move capital for illegal activities while circumventing anti-money laundering controls.
Spanish authorities arrested Johnny Morrisey in September 2022 on charges of laundering 200 million euro over 18 months. The US government previously sanctioned Morrisey and six other Kinahan cartel figures in April 2022.
The players
Johnny Morrisey
He is an alleged primary money launderer for the Kinahan cartel.
Kinahan Cartel
This is a transnational organized crime group involved in drug and arms trafficking.
Europol
This is the European Union agency for law enforcement cooperation that investigates organized crime.
US State Department
This is the United States federal executive department responsible for international relations and foreign policy.
Lucy Myles
She is a representative affiliated with Europol investigations.
The details
The hawala system operates on trust between brokers, allowing them to deliver funds across international borders without physically transporting cash. Criminals deposit money with a broker in one country, which is then released to a recipient through another broker in a different location.
Timeline
2017: Lucy Myles joined Europol.
April 2022: US authorities sanctioned seven Kinahan figures.
September 2022: Johnny Morrisey was arrested in Spain.
Legal Context
The use of hawala networks represents a shift in criminal strategy following the enforcement of the US Treasury's sanctions against the Kinahan Organized Crime Group. These networks allow illicit actors to maintain financial operations despite increased international pressure.
Law enforcement agencies are focusing on dismantling these networks to reduce the financial viability of drug and arms trafficking organizations. These investigations may lead to increased scrutiny of informal international money transfer services by global regulators.
The takeaway
The hawala system remains a significant challenge for global authorities due to its reliance on informal, trust-based relationships. Identifying and monitoring encrypted communication channels is currently the primary method for law enforcement to track these hidden transactions.
Further reading
For more information on illicit monetary activities, visit our section on Financial Crime.
Source note: This article includes information reported by Irish Examiner.
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