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The latest global report by the Financial Action Task Force (FATF), a Paris-based global organization that monitors money laundering and terror financing at the international level, has revealed a large and well-planned network of black money. The report highlights how professional money launderers and organized crime syndicates are converting crores of rupees of black money into white by sending it across the border through shell companies (fake companies), fake business documents (Trade-Based Money Laundering) and illegal hawala channels. The FATF has lauded India's financial investigative capabilities by including in its report two major case studies highlighted by Indian investigative agencies—specifically the Enforcement Directorate (ED) and the Directorate of Revenue Intelligence (DRI). Case 1: A game of fake papers, under-invoicing and circular trading According to the first case included in the FATF report, Indian authorities dismantled a complex cross-border network that was operating through dummy and shell companies operating only on paper. These fake companies were formed on the basis of anonymous directors and stolen or fake identity cards. The modus operandi of this gang was very shocking: the gang imported genuine goods, but the price was shown at customs much lower than the actual value (under-invoicing). To send the remaining amount, fake import bills were prepared through domestic shell companies present in India and huge amounts were sent abroad under the guise of legitimate trade payments. This syndicate also resorted to 'circular trading'. The goods were first sent to the concerned companies located in the third country, then the payments were stopped by showing fake commercial disputes. After this, the same goods were further diverted to other companies under their control, thereby completely hiding the real source and destination of the money. Case 2: Illegal online gaming and foreign investment drama through 'Digital Hawala' In the second case, Indian agencies exposed the layers of web spread by illegal online betting and gaming platforms. This platform facilitated illegal betting on cricket, card games and various sports. The gang had created a loose structure of 'panel operators' to keep financial leads separate from the main betting apps. UPI, internet banking, digital wallets and 'Mule Accounts' opened in the name of poor and unknown people were used to collect money from bookmakers and make payments to the winners. The accumulated black money was converted into cash and then sent out of India through traditional and underground hawala networks. The biggest game happened when the illegal money sent abroad (especially to UAE) through this hawala was disguised as Foreign Direct Investment (FDI) and reinvested in Indian companies as 'white money'. Shift from traditional hawala to 'digital hawala': FATF's warning FATF Chairman Giles Thomson has warned that professional and organized money laundering networks today are a threat to the entire world's financial system. "critical risk factor" (Serious Risk Multiplier) has been created. The report highlights that underground banking and unregistered hawala have now taken the form of 'digital hawala' combined with modern technology. Now hawala operators do real-time coordination over encrypted messaging apps like WhatsApp and Telegram. Payments from customers are taken through bank transfers or instant payment systems, while final settlement of cross-border accounts is done anonymously using virtual assets such as cryptocurrencies and stablecoins. More than 80% of the countries considered hawala and shell companies as the biggest threat. More than 80% of the member countries reporting to FATF have described informal and underground banking as the main means of money laundering. In some cases, such illegal syndicates transferred illegal funds amounting to 500 million Euros (approximately more than Rs 4,500 crore) across the borders of different countries within just a few months. Although informal channels are a common means of remittances for migrant workers, such unlicensed networks are illegal in most countries and violate international financial security standards. India's action and strict rules: Agencies tightened crackdown India is continuously cracking down on shell companies and fake business under the Prevention of Money Laundering Act (PMLA) and Benami Property Prevention laws. The Ministry of Corporate Affairs (MCA) and SEBI have curbed the misuse of dummy companies by making it mandatory to identify the actual beneficiaries (Ultimate Beneficial Owners – UBOs) of the companies. The uncovering of these complex international networks by Indian agencies has given a new direction to the fight against financial crimes globally.