KARACHI: The State Bank of Pakistan (SBP) has rejected reports suggesting that the Financial Action Task Force (FATF) identified Raast as a channel for money laundering, saying the report neither describes the payment system as a money-laundering mechanism nor raises concerns about its integrity.
In a clarification, the central bank said it had taken notice of a “misleading headline” on a social media platform that suggested FATF had identified Raast as a channel for money laundering.
“The FATF report neither identifies Raast as a money-laundering mechanism nor raises any specific concern regarding the integrity of the Raast payment infrastructure,” the SBP said, adding that any portrayal suggesting otherwise misrepresented the report’s context and findings.
The SBP said the FATF report discusses the potential misuse of formal banking and payment channels by underground banking and hawala networks across different countries and jurisdictions.
It clarified that Raast was mentioned only as a legitimate domestic payment channel used for payments and transfers within Pakistan.
The central bank further stressed that Raast does not currently facilitate cross-border transfers.
The SBP said it remained committed to maintaining the integrity of Pakistan’s payment systems and would continue monitoring and strengthening safeguards in line with international standards.
The SBP clarification follows reporting on a joint FATF-OECD study that detailed an Oman-based hawala network facilitating unlicensed cross-border remittances to Pakistan through WhatsApp, mobile-linked transfers and e-wallets.
The activity came under scrutiny after a reporting entity noticed a sudden decline in customer remittances through certain corridors. Subsequent enquiries identified a WhatsApp group called “XX Money Exchange”, operated by foreign nationals offering foreign exchange and remittance services to expatriate communities in Oman.
According to the report, the hawaladars offered exchange rates below formal market rates while charging minimal or no fees. Customers provided funds either in cash or through mobile-linked transfers, while e-wallets were used to arrange corresponding payments in the destination jurisdiction.
The report said the scheme took advantage of lower-cost remittance channels in destination countries, including fee-free transfer channels to Pakistan, as well as exchange-rate differentials offered by some digital wallet or payment providers.
