Govt Increases Currency Transaction Report Threshold to Rs3 Million

ISLAMABAD: The government has raised the currency transaction threshold by 50% to Rs3 million, requiring banks to report suspicious transactions to the Financial Monitoring Unit (FMU) of the State Bank of Pakistan under the Anti-Money Laundering Act (AMLA).

This adjustment, increasing the threshold from Rs2 million to Rs3 million for Currency Transaction Reports (CTRs), was approved by the National Executive Committee (NEC) on Anti-Money Laundering and Countering Financing of Terrorism (AML-CFT). The change aims to enhance the efficiency of monitoring financial transactions and to better combat money laundering and related financial crimes.

The rise in the reporting threshold is expected to streamline the process for banks, potentially reducing the volume of reports submitted to the FMU. This could allow for a more focused approach in identifying genuinely suspicious activities, thereby strengthening the financial system’s integrity and compliance with international standards.

Moving forward, financial institutions will need to adjust their reporting mechanisms to align with the new threshold. The NEC is likely to monitor the impact of this change closely, with further adjustments possible based on its effectiveness in curbing illicit financial activities.