The State Bank of Pakistan (SBP) has increased the minimum threshold for reporting currency transactions to the Financial Monitoring Unit (FMU) from Rs2 million to Rs3 million, with immediate effect, following a directive issued by the federal government. The revised limit requires banks and other financial institutions regulated by the central bank to follow the updated reporting requirements under the Anti-Money Laundering Act, 2010. The threshold has been increased by Rs1 million from the previous limit, which had remained applicable since January 2015. The revision changes the minimum transaction amount for submitting Currency Transaction Reports (CTRs) to the country’s financial intelligence authority.
In a circular issued to banks and regulated financial institutions, the central bank communicated the revised reporting threshold following a Finance Ministry notification dated November 11, 2026. The notification was issued under the authority of the National Executive Committee on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT). Exercising its powers under Section 2(xi) of the Anti-Money Laundering Act, 2010, the committee notified Rs3 million as the minimum amount for reporting currency transactions to the FMU. The decision amends the earlier Finance Division notification SRO 73(I)/2015, issued on January 21, 2015, which had established the previous reporting limit of Rs2 million.
The revised threshold forms part of the regulatory framework governing financial transaction monitoring and reporting in Pakistan. Under Section 7 of the Anti-Money Laundering Act, entities regulated by SBP are required to submit both Suspicious Transaction Reports (STRs) and Currency Transaction Reports to the Financial Monitoring Unit. These reporting obligations enable the relevant authorities to receive information about financial activities that may require examination under the country’s anti-money laundering and counter-terrorism financing framework. While the new Rs3 million limit changes the minimum amount applicable to currency transaction reporting, the requirement to report suspicious transactions remains a separate obligation for regulated institutions.
The central bank has directed all banks and financial institutions operating under its regulatory oversight to ensure compliance with the revised reporting requirements. Institutions are required to incorporate the updated threshold into their transaction monitoring and reporting procedures and ensure that relevant internal processes reflect the federal government’s notification. The circular also reinforces the importance of maintaining adequate transaction records and conducting appropriate reviews of financial activities. Banks and other regulated entities must retain information concerning domestic and international transactions, including analyses conducted to establish the background and purpose of complex, unusual or large transactions.
Record-keeping requirements under the existing framework also require financial institutions to preserve transaction details and reports submitted to the FMU for at least 10 years from the completion of the transaction. This includes documentation relating to the nature of financial activities and assessments undertaken by institutions to understand transactions that may require additional scrutiny. Maintaining these records allows regulatory and investigative authorities to access relevant financial information when required and supports compliance with applicable anti-money laundering obligations. The retention requirement applies to transaction records as well as reports filed with the Financial Monitoring Unit.
The increase from Rs2 million to Rs3 million represents the first revision of the minimum currency transaction reporting threshold since the 2015 notification. The change follows the latest decision of the National Executive Committee on AML/CFT and has been communicated to regulated institutions through the SBP circular. Banks and financial institutions are now required to apply the revised threshold while continuing to fulfil their obligations concerning suspicious transaction reporting, transaction analysis and long-term record retention. The updated requirement establishes a new reporting limit within Pakistan’s existing financial monitoring framework, while maintaining the broader compliance responsibilities imposed under the Anti-Money Laundering Act, 2010.
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