KARACHI: The State Bank of Pakistan has rejected interpretations that a Financial Action Task Force report identified the Raast instant payment system as a money-laundering mechanism, saying the document raised no concerns about the network’s integrity.
The clarification followed discussion of a FATF and OECD joint fact-finding report that examined underground banking and hawala operations.
The report highlighted a case involving a hawala network operating between Oman and Pakistan that used digital payment channels, including Raast, for domestic transfers.
However, the central bank stressed that mentioning Raast as a payment channel did not mean FATF had questioned the system itself.
FATF Report Mentions Raast in Hawala Case
The FATF report refers to Raast among payment channels reportedly exploited because of their low-cost remittance features. Nevertheless, SBP said the report did not identify Raast itself as a mechanism designed or specifically used for laundering illicit funds.
According to the regulator, interpreting the reference as evidence of weaknesses in Raast’s infrastructure would misrepresent the report’s findings and context.
The central bank maintained that Raast appeared in the case as a legitimate domestic payment channel.
SBP Says Raast Does Not Support Cross-Border Transfers
Moreover, SBP emphasised that Raast currently operates as a domestic instant payment system and does not facilitate cross-border transfers.
Therefore, the regulator distinguished between alleged misuse of a legitimate payment channel by individuals and concerns about the integrity of the underlying payment infrastructure.
The clarification seeks to address reports suggesting that FATF had directly identified Raast as vulnerable to money laundering.
SBP maintained that the FATF document made no such finding against the payment network.
Meanwhile, the case highlighted in the joint report illustrates how hawala operators can potentially combine informal financial networks with legitimate digital payment channels when moving funds domestically.
