The State Bank of Pakistan (SBP) has rejected reports claiming that the Financial Action Task Force (FATF) identified Raast as a channel for money laundering. The central bank said the FATF report did not identify Raast as a money-laundering mechanism or raise specific concerns about its payment infrastructure.

The clarification came after a misleading headline circulated on social media, linking Pakistan's instant payment system with findings about underground banking and illicit finance.

FATF report and Raast payment system

According to SBP, the FATF report discussed the possible misuse of formal banking and payment channels by underground banking and hawala networks in different countries. Raast was mentioned as a legitimate domestic payment channel rather than as a system flagged for money laundering.

The bank also stressed that Raast currently supports domestic payments and transfers and does not facilitate direct cross-border transactions.

How Raast works in Pakistan

Raast is Pakistan's national instant payment system, allowing individuals, businesses and government entities to make digital payments quickly. Users can also link their mobile numbers to bank accounts and use them as Raast IDs for convenient transfers.

The FATF and OECD report did, however, highlight a Pakistan-linked hawala case in which digital payment channels, including Raast, were used for domestic transfers. This does not mean the Raast system itself was identified as a money-laundering mechanism.

SBP said it will continue monitoring and strengthening safeguards to protect the integrity of Pakistan's payment infrastructure.