The State Bank of Pakistan (SBP) has rejected claims that the Financial Action Task Force (FATF) identified Raast as a money-laundering channel, saying the report did not raise any concerns about the integrity of Pakistan’s instant payment system.
SBP said the FATF report examines how underground banking and hawala networks can misuse legitimate financial and payment channels in different countries, but does not classify Raast itself as a money-laundering mechanism.
The clarification follows discussion around a joint FATF and Organisation for Economic Co-operation and Development (OECD) report that examined the growing use of digital technology by underground financial networks.
The report includes a case involving a hawala network operating between Oman and Pakistan. According to the report, the network used digital payment channels, including Raast, to settle transactions with counterparts in Pakistan.
SBP, however, stressed that Raast was mentioned only as a legitimate domestic payment channel. It said Raast currently does not support cross-border transfers.
The central bank said any interpretation suggesting that FATF had raised concerns about Raast or identified it as a tool for money laundering would misrepresent the report’s findings.
The FATF and OECD report said underground financial networks are increasingly adopting digital tools to move and conceal illicit funds. These include bank accounts, mobile wallets, fintech applications, instant payment systems, encrypted messaging platforms and virtual assets.
The report said nearly 70 percent of jurisdictions and organizations surveyed had identified the use of new technologies by underground banking networks.
In the Oman-Pakistan case, authorities identified six suspected individuals connected to the network and recorded transactions worth approximately $72,293 over a one-year period.
The network reportedly used WhatsApp to advertise foreign exchange and remittance services to customers, who made payments through cash or mobile-linked transfers. Digital wallets were then used to settle transactions with operators in Pakistan.
SBP said it remains committed to protecting Pakistan’s payment infrastructure and regularly strengthening safeguards and monitoring mechanisms in line with international standards.
The central bank maintained that the FATF report’s reference to Raast relates to the potential misuse of legitimate payment channels by underground networks, rather than any identified weakness or money-laundering function within Raast itself.
