ISLAMABAD – The federal government brings change to banking regulations, raising mandatory cash transaction reporting threshold by 50%, allowing banks and financial institutions to process certain cash deposits and withdrawals without automatically reporting them to the authorities.
Under revised regulations, cash transactions of Rs3 million or above must now be reported to the Financial Monitoring Unit (FMU), compared with the previous threshold of Rs2 million.
The change provides relief from routine reporting requirements for transactions falling between the previous and revised thresholds, although financial institutions must continue monitoring suspicious financial activity.
The new regulations mean that cash deposits, withdrawals and other qualifying transactions below Rs3 million will no longer automatically trigger a Currency Transaction Report (CTR) solely because of their value. Previously, banks were required to report cash transactions worth Rs2 million or more. Following the latest revision, the threshold has increased by Rs1 million, representing a 50% rise.
Asaan Assignment Accounts to end Cash Payments by Mid-November under New Rules
However, the revised policy does not mean cash transactions below Rs3 million are exempt from scrutiny. Banks and other reporting institutions remain legally responsible for identifying and reporting suspicious activity, regardless of the amount involved. A Suspicious Transaction Report (STR) can still be submitted when a transaction raises concerns about possible money laundering, terrorist financing or other unlawful financial activity.
Ministry of Finance formally notified the revised threshold on November 11, 2026, through notification No. 3(40)AML/2025-P-002-0001. Financial Monitoring Unit subsequently communicated the decision through Circular No. 03 of 2026, while the State Bank of Pakistan issued BPRD Circular Letter No. 24 of 2026 on November 12 to implement the revised requirements.
The National Executive Committee on Anti-Money Laundering and Countering Financing of Terrorism had approved the increase in October 2026.
The amendment was introduced under Section 2(xi) of the Anti-Money Laundering Act, 2010, replacing the Rs2 million threshold established through S.R.O. 73(I)/2015 on January 21, 2015.
Despite increase in the reporting threshold, the government’s anti-money laundering safeguards remain in place. Banks and other regulated financial institutions must continue submitting CTRs for qualifying transactions reaching or exceeding Rs3 million. Reports must be filed within seven working days of the transaction.
The revision does not affect the requirement to report suspicious transactions, which can be flagged regardless of their monetary value.
