Islamabad: Pakistan’s National Executive Committee has approved raising the cash transaction reporting threshold from Rs two million to Rs three million, changing the amount that triggers a mandatory currency report without removing the separate requirement to flag suspicious activity.
According to Dawn, the decision formed part of a review of the country’s framework against money laundering and terrorist financing, chaired by Finance Minister Muhammad Aurangzeb.
The distinction between the two reporting systems is significant. A Currency Transaction Report (CTR) is required when a cash transaction meets or exceeds the specified threshold. A Suspicious Transaction Report (STR) concerns activity suspected of involving money laundering or terrorist financing.
The higher CTR threshold therefore does not make transactions below Rs three million exempt from scrutiny where suspicion arises. Equally, a cash transaction reaching the reporting threshold is not, by that fact alone, evidence of wrongdoing.
The committee also approved adding maritime piracy under Section 28 of the Pakistan Maritime Zones Act 2023 to the Anti Money Laundering Act’s schedule of predicate offences. These are underlying crimes whose proceeds can become the subject of money laundering investigations.
Another approved amendment would include the Pakistan Virtual Assets Regulatory Authority (PVARA) among regulators recognised under the Act, extending its role in enforcing requirements against money laundering and terrorist financing in the virtual asset sector.
The Financial Monitoring Unit (FMU) receives and analyses transaction reports and can seek supporting records before sharing relevant intelligence with investigating agencies.
Aurangzeb called for stronger coordination and a timetable to improve the unit’s analytical and operational capacity. The meeting also reviewed initiatives involving artificial intelligence and machine learning.
The report did not specify when the revised threshold and statutory changes would take effect through the required notifications.
