The State Bank of Pakistan (SBP) has rejected media reports and social media claims suggesting that the Financial Action Task Force (FATF) identified Pakistan’s Raast payment system as a channel for money laundering.
The central bank said the claims misrepresent the findings and context of FATF’s latest report on professional money laundering, underground banking and hawala networks. According to SBP, the report neither identifies Raast as a money-laundering mechanism nor raises any specific concerns about the integrity of the Raast payment infrastructure.
Table of Contents
Key Takeaways
| Detail | Information |
|---|---|
| Institution issuing clarification | State Bank of Pakistan |
| Payment system | Raast |
| Organization mentioned in claims | Financial Action Task Force (FATF) |
| FATF report | Investigating Professional Money Laundering, Underground Banking, and the Use of Hawala and Other Similar Service Providers |
| SBP clarification | September 4, 2026 |
| Was Raast flagged by FATF? | No |
| Does Raast support international transfers? | No, it currently supports domestic transfers within Pakistan |
| Nature of Raast | Pakistan’s national instant payment system |
What Did SBP Actually Clarify?
SBP said it had taken notice of a misleading headline circulating on social media that created the impression that FATF had specifically identified Raast as a money-laundering channel.
The central bank stressed that this interpretation is incorrect. FATF’s report examines the global misuse of underground banking, hawala and other similar service providers, including the ways criminal networks can exploit formal financial channels as part of broader money-laundering schemes.
Raast, however, was not singled out by FATF as a money-laundering mechanism or as a payment infrastructure with integrity concerns.
What Does the FATF Report Actually Discuss?
FATF’s 2026 report focuses on professional money laundering, underground banking and hawala and other similar service providers (HOSSPs).
The report notes that criminal networks can exploit different parts of the formal and informal financial ecosystem. It identifies the growing use of digital tools, payment service providers, virtual IBANs, prepaid cards and virtual-asset wallets in money-laundering schemes.
The report also discusses the intersection between underground banking networks and the formal financial sector. This broad discussion appears to have been the basis for the misleading interpretation surrounding Raast.
Importantly, a payment system being part of a country’s legitimate financial infrastructure does not mean that FATF has classified that system itself as a money-laundering mechanism.
Raast Was Mentioned as a Legitimate Domestic Payment Channel
SBP clarified that Raast was mentioned in the context of being a legitimate domestic payment channel used for payments and transfers within Pakistan.
This distinction is important because Raast is Pakistan’s national instant payment infrastructure, designed to facilitate real-time digital payments between individuals, businesses and government entities.
SBP’s official Raast information also confirms that the system is currently intended for local transfers within Pakistan and does not support international transactions.
What Is Raast?
Raast is Pakistan’s national instant payment system developed to make digital payments faster, more accessible and interoperable across the country’s financial sector.
The system enables customers to transfer funds through participating financial institutions, including banks and other regulated entities. It supports use cases such as person-to-person and person-to-merchant payments.
Customers can use Raast through participating banks’ mobile applications, internet banking and other available channels. The system also allows users to send payments using a Raast ID linked to their bank account or through an IBAN.
FATF’s Concern Is About Criminal Misuse, Not Raast Itself
FATF’s latest report highlights a broader global concern: professional money-laundering networks are increasingly adapting to technological changes and exploiting both informal and formal financial channels.
The report specifically examines how underground banking and hawala networks can interact with regulated financial systems. It also highlights digital transformation within criminal financial networks, including the use of payment service providers and other digital financial tools.
This does not amount to a finding that every payment system mentioned in the broader financial ecosystem is itself involved in money laundering.
SBP Emphasizes Security and Regulatory Oversight
SBP said it remains committed to protecting the integrity of Pakistan’s payment systems and continuously strengthening safeguards in line with international standards.
Raast operates within Pakistan’s regulated payments ecosystem. SBP’s payment-systems framework provides for oversight and regulation of payment systems under the Payment Systems and Electronic Fund Transfer Act, 2007.
The central bank has also established participation criteria for institutions joining Raast, covering banks, microfinance banks, electronic money institutions, payment system operators and payment service providers.
Why This Clarification Matters
The clarification comes at a time when Pakistan is rapidly expanding digital payments and financial technology adoption.
A claim that an international financial watchdog has specifically flagged Raast for money laundering could undermine public confidence in one of Pakistan’s most important digital-payment initiatives.
SBP’s clarification therefore separates two issues: the legitimate use of formal payment infrastructure and the potential criminal exploitation of financial channels by money-laundering networks.
FATF’s report is focused on the latter. It does not, according to SBP, identify Raast as a money-laundering mechanism or raise concerns about its integrity.
The Bottom Line
The viral claim that FATF identified Raast as a money-laundering channel is misleading.
SBP has explicitly stated that FATF did not flag Raast or raise specific concerns about the integrity of its infrastructure. Raast was referenced in the broader context of legitimate domestic payment channels and the potential misuse of formal financial systems by criminal networks.
As Pakistan continues moving toward a more digital financial system, distinguishing between a payment infrastructure and its potential criminal misuse will remain important for accurate reporting and public understanding.
FAQs
Did FATF identify Raast as a money-laundering channel?
No. SBP says the FATF report neither identifies Raast as a money-laundering mechanism nor raises specific concerns about the integrity of Raast.
What did FATF’s 2026 report examine?
The report examines professional money laundering, underground banking, hawala and other similar service providers, including how criminal networks exploit financial and digital channels.
Is Raast used for international money transfers?
No. SBP states that Raast is currently activated for local transfers within Pakistan and does not support international transactions.
What is Raast?
Raast is Pakistan’s national instant payment system, designed to enable fast, interoperable digital payments among individuals, businesses and government entities.
Why did the confusion arise?
The confusion appears to have resulted from a misleading headline or interpretation of FATF’s broader discussion about the potential misuse of formal payment and financial channels by underground banking and money-laundering networks. SBP said this interpretation misrepresented the report’s actual findings.
Is Raast regulated?
Yes. Raast operates within Pakistan’s regulated payment-system framework overseen by the State Bank of Pakistan.
