State Bank of Pakistan denies Raast is a money laundering mechanism

The State Bank of Pakistan (SBP) has issued a clarification rejecting claims that the Financial Action Task Force (FATF) identified the Raast instant payment system as a money laundering mechanism. The central bank stated that such interpretations misrepresent a joint FATF and OECD fact-finding report regarding underground banking and hawala networks.

The SBP clarified that while the report mentions Raast, it does so as a legitimate domestic payment channel that was used by an Oman-based hawala network to facilitate domestic transfers. The report notes that low-cost payment channels can be exploited by such networks, but it does not raise specific concerns regarding the integrity or security of the Raast infrastructure itself.

Furthermore, the SBP emphasized that Raast currently only supports domestic payments and does not facilitate cross-border transfers. The regulator reaffirmed its commitment to maintaining the integrity of Pakistan’s payment systems and strengthening safeguards in accordance with international standards.