Pakistan Introduces New Monitoring System to Prevent Money Laundering and Terror Financing

Islamabad: The federal government has decided to tighten oversight of businesses dealing in gold and other precious metals as part of efforts to strengthen the fight against money laundering and terror financing.

According to officials from the Ministry of Finance, the government has taken steps to further reinforce the anti-money laundering (AML) and counter-terror financing (CTF) framework. As part of these measures, stricter monitoring of the trade in gold and other precious metals will be implemented.

The State Bank of Pakistan (SBP) has also introduced a new monitoring system aimed at preventing trade-based money laundering. Under the enhanced framework, real estate agents, dealers, and individuals associated with high-risk non-financial businesses will be closely monitored. Effective oversight will be ensured for all non-financial businesses and professions to curb illicit financial activities.

The International Monetary Fund (IMF) has previously highlighted that Pakistan faces risks related to trade-based money laundering. In response, the Ministry of Finance said that the SBP, the Federal Board of Revenue (FBR), and the Financial Monitoring Unit (FMU) are jointly assessing the economic impact of such activities.

Officials further stated that a National Risk Assessment Report will be shared with relevant institutions by March 2026. Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) established a central beneficial ownership registry in July 2025, which will be made available online to financial institutions and law enforcement agencies by January 2026.

The Ministry of Finance also recalled that Pakistan was removed from the Financial Action Task Force (FATF) grey list in October 2022, adding that continuous implementation of FATF recommendations remains underway to safeguard the country’s financial system.