The federal government has increased the cash transaction reporting threshold for banks and other financial institutions from Rs. 20 million to Rs. 30 million under the Anti-Money Laundering Act. The revised limit is expected to change the reporting requirements for large cash transactions across Pakistan.
The Ministry of Finance has issued an official notification announcing the adjustment to the threshold for Currency Transaction Reports (CTRs). The new limit has taken effect immediately, replacing the previous reporting threshold of Rs. 20 million.
Under the revised arrangement, banks and other financial institutions will be required to report qualifying cash transactions of Rs. 30 million or more under the applicable reporting framework.
The increase means that the reporting threshold has been raised by Rs. 10 million, representing a 50 percent adjustment compared with the previous limit.
Currency Transaction Reports are an important part of Pakistan’s financial monitoring system. They help relevant authorities monitor large cash movements and identify financial activities that may require further examination under anti-money laundering regulations.
Financial institutions play a central role in this process by monitoring customer transactions and submitting reports when activities meet the prescribed regulatory requirements.
The latest decision revises the amount at which cash transactions fall within the specified CTR reporting threshold. However, it does not mean that transactions below Rs. 30 million are automatically exempt from all financial monitoring or reporting requirements.
Banks and financial institutions must continue to follow other applicable anti-money laundering regulations, including requirements relating to suspicious transactions. A transaction may still attract regulatory attention if it raises concerns, regardless of its amount.
The Anti-Money Laundering Act provides the legal framework for monitoring financial activities and preventing the misuse of Pakistan’s financial system for illegal purposes.
The revised threshold is expected to be relevant for banks, businesses and individuals involved in high-value cash transactions. Financial institutions will need to align their internal monitoring and reporting procedures with the updated requirements.
For customers, the change is particularly important because it clarifies the revised reporting threshold applicable to large cash transactions. However, normal banking procedures, identity verification requirements and other compliance checks will continue to apply.
With the Ministry of Finance’s notification now in effect, the increase from Rs. 20 million to Rs. 30 million marks a change in Pakistan’s financial transaction reporting framework.
Banks and other regulated institutions will be responsible for implementing the updated threshold while continuing to meet their broader obligations under anti-money laundering laws.