Washington targets hawala networks used to move cash off the grid

The US government is ramping up enforcement against hawala, an informal banking system that moves cash across borders without wires, bank accounts, or digital services. On August 20, 2026, the Treasury designated 10 individuals tied to a Hizballah cash-smuggling network that funneled money through Lebanon, Türkiye, the UAE, and Iran, using hawala channels as the financial plumbing. Rather than slapping a blanket ban on the entire system, Washington is going surgical. The focus is on specific operators and intermediaries, including previously sanctioned entities like Haji Basir and Zarjmil Company Hawala, both flagged for connections to terrorism and illicit financial networks. How hawala actually works Think of hawala as a system built entirely on trust and human relationships, minus any app, any server, or any paper trail worth mentioning. A customer in one country gives cash to a local broker, called a hawaladar. That broker contacts a counterpart in the destination country, who pays out the equivalent amount to the recipient. No money physically crosses a border. The two brokers settle up later through trade, reciprocal transfers, or other arrangements. The system predates moder...