Key Takeaways
- The State Bank of Pakistan (SBP) has rejected a FATF report linking Raast to money laundering.
- SBP states the report does not raise concerns about the integrity of Pakistan’s instant payment system.
- Raast is mentioned as a legitimate domestic payment channel, not a money-laundering mechanism.
The State Bank of Pakistan (SBP) has issued a statement rejecting a report by the Financial Action Task Force (FATF) that links the Raast payment network to money laundering activities. According to the SBP, the FATF’s report does not identify Raast as a money-laundering mechanism or raise any specific concerns about the integrity of its payment infrastructure.
In a clarification, the SBP stated that the FATF report mentions Raast only as one of the payment channels being exploited for their low-cost remittance charges, specifically on page 35 of the report. The SBP emphasized that any interpretation linking Raast to money laundering misrepresents the findings and context of the report.
The SBP further clarified that Raast is currently not used for cross-border transfers, and it is only a legitimate domestic payment channel. The FATF report highlights a case involving a hawala network operating between Oman and Pakistan, which used digital payment channels, including Raast, for domestic transfers. However, this does not indicate that Raast itself is involved in money laundering.
The SBP’s statement comes after a case was highlighted in the FATF and OECD’s joint fact-finding report, which raised concerns about the use of digital payment channels for money laundering. The SBP emphasized that the FATF report does not identify Raast as a money-laundering mechanism or raise any specific concerns about the integrity of its payment infrastructure.
The SBP’s clarification is aimed at dispelling any misinterpretations and ensuring that the public and stakeholders understand the correct context of the FATF report. The SBP stated that the report only mentions Raast as a legitimate domestic payment channel and does not support cross-border transfers.
The SBP’s stance is in line with its commitment to maintaining the integrity of Pakistan’s financial system and ensuring that all payment channels are used for legitimate purposes. The SBP’s statement is a response to the concerns raised by the FATF and aims to provide clarity to the public and stakeholders.
