SBP rejects claims linking Raast to money laundering

The State Bank of Pakistan (SBP) has rejected what it described as a misleading headline suggesting that the Financial Action Task Force (FATF) had identified Raast, Pakistan’s instant payment system, as a channel for money laundering.

 

In a statement issued on social media, the central bank clarified that the latest FATF report did not identify Raast as a money laundering mechanism or raise concerns regarding the integrity of Pakistan’s payment infrastructure.

 

The SBP said the FATF report was focused on the potential misuse of formal banking and payment systems by underground banking networks, hawala operators and other similar service providers across various jurisdictions.

 

According to the central bank, Raast was mentioned in the report only as a legitimate domestic payment channel used for local payments and transfers. It stressed that portraying the FATF report as raising specific concerns about Raast misrepresented its findings and context.

 

The SBP reiterated that it remains committed to protecting the integrity of Pakistan’s payment systems and continues to strengthen monitoring and safeguards in line with international standards.

 

The clarification followed the publication of a FATF report examining professional money laundering, underground banking, hawala and other similar service providers, which highlighted the growing use of informal financial networks to facilitate illicit finance.

 

The report, which also involved contributions from Pakistani officials, discussed a case involving an alleged unlicensed cross-border remittance operation in Oman linked to transfers to Pakistan.

 

According to the report, authorities in Oman identified a social media-based network advertising foreign exchange and remittance services to expatriates. The network allegedly used lower-cost remittance channels, including fee-free transfers to Pakistan through Raast and other digital payment platforms.

 

The scheme reportedly involved hawala operators collecting funds from customers in Oman and coordinating with counterparts in Pakistan. After receiving confirmation of the transaction, the corresponding amount was transferred locally through Raast and other payment channels to recipients nominated by the remitter.

 

The SBP's clarification emphasised that the FATF's reference to Raast concerned its alleged use within such a scheme and did not amount to an assessment that the payment system itself facilitates money laundering.