SBP Rejects FATF Report Linking RAAST to Money Laundering in Pakistan
In practice, the State Bank of Pakistan (SBP) has rejected a report by the Financial Action Task Force (FATF) that the Raast payment network was being applied for capital laundering.
In practice, the State Bank of Pakistan (SBP) has rejected a report by the Financial Action Task Force (FATF) that the Raast payment network was being applied for capital laundering.
Article outline
- What happened
- Background
- The details
- The bottom line
Key points
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- Illegal, AI Funds Transfer Networks Particularly Active in Pakistan and India: FATF.
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- Any interpretation linking Raast itself to funds laundering misrepresents the report's findings and context.
- SBP remarked the report did not raise any worries regarding the integrity of Pakistan's instant payment system.
SBP remarked the report did not raise any worries regarding the integrity of Pakistan's instant payment system. Readers should take note that the FATF's fact-finding report clearly mentions Raast as one of the payment channels being exploited for their low-cost remittance charges (Report page: 35).
For context, the clarification comes after a case was highlighted in the FATF and OECD's joint fact-finding report in which a hawala network operating between Oman and Pakistan applied digital payment channels, including Raast, for domestic transfers.
SBP remarked the FATF report does not identify Raast as a money-laundering mechanism or raise any specific worries regarding the integrity of its payment infrastructure.
Any interpretation linking Raast itself to funds laundering misrepresents the report's findings and context. The regulator opined that Raast was mentioned only as a legitimate domestic payment channel and does not at present backing cross-border transfers. Stay Connected with ProPakistani.
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For now, SBP Rejects FATF Report Linking RAAST to Money Laundering in Pakistan remains the part of the story worth watching, and further updates are likely as more details are confirmed.
