Pakistan Raises Currency Transaction Reporting Threshold to PKR 3 Million

CTR Threshold Increased to PKR 3 Million

The NEC, chaired by Finance Minister Muhammad Aurangzeb, approved raising the Currency Transaction Report (CTR) threshold from PKR 2 million to PKR 3 million. Banks and other reporting entities must submit reports to the Financial Monitoring Unit (FMU) for cash transactions meeting the applicable threshold.

The change forms part of a broader review of how Suspicious Transaction Reports (STRs) and CTRs are analysed. While CTRs are triggered by transaction amounts, STRs concern activities that raise suspicions of money laundering, terrorist financing or related financial crime.

Maritime Piracy Added as a Predicate Offence

The committee approved adding Section 28 of the Pakistan Maritime Zones Act 2023 to Schedule I of the Anti-Money Laundering Act (AMLA). This brings maritime piracy within the scope of predicate offences under Pakistan’s AML framework, strengthening the legal basis for addressing illicit proceeds generated through such activities.

PVARA Brought Within the AML Framework

The NEC approved adding PVARA to Schedule IV of the AMLA, incorporating the virtual asset regulator into Pakistan’s AML/CFT oversight framework. The development reflects efforts to address financial crime risks associated with virtual assets and strengthen coordination among regulatory institutions.

Strengthening Financial Intelligence and AML Oversight

The meeting also reviewed the FMU’s performance, institutional capacity, implementation of previous decisions and the use of artificial intelligence and machine learning.

The FMU receives and analyses STRs and CTRs, gathers relevant financial information and shares intelligence with investigating authorities and foreign financial intelligence units where appropriate. Finance Minister Muhammad Aurangzeb stressed timely follow-up, stronger inter-agency coordination and a clear roadmap to improve the unit’s analytical and operational capabilities.

For compliance teams, the changes highlight the need to update CTR procedures while continuing to report suspicious activity regardless of transaction value where required. Firms should also monitor evolving AML/CFT obligations and assess risks associated with emerging financial channels.