Pakistan has revised its cash transaction reporting requirements, increasing the mandatory Currency Transaction Report (CTR) threshold from Rs2 million to Rs3 million. The State Bank of Pakistan (SBP) has instructed banks and other regulated financial institutions to follow the updated limit with immediate effect.
The change represents a 50% increase in the reporting threshold and follows the government’s approval of amendments to the country’s anti-money laundering framework.
New CTR Threshold Announced by SBP
According to SBP’s BPRD Circular Letter No. 24, issued on November 12, 2026, the Ministry of Finance formally notified the revised reporting limit a day earlier, on November 11.
Under the updated notification, currency transactions amounting to Rs3 million or more fall within the mandatory CTR reporting requirement. The revised limit replaces the previous Rs2 million threshold established through S.R.O. 73(I)/2015, dated January 21, 2015.
Banks and other reporting institutions are required to submit relevant transaction reports to the Financial Monitoring Unit (FMU) in accordance with the Anti-Money Laundering Act, 2010.
Why Has Pakistan Increased the Reporting Limit?
The decision follows a meeting of the National Executive Committee (NEC) on Anti-Money Laundering and Countering the Financing of Terrorism (AML-CFT).
During its 19th meeting, held last month under the chairmanship of Finance Minister Muhammad Aurangzeb, the committee approved raising the CTR threshold by Rs1 million.
The meeting also considered broader changes to Pakistan’s anti-money laundering regulations, including provisions covering virtual asset regulation and piracy-related offences.
Following the committee’s approval, the Finance Division issued the necessary notification under Section 2(xi) of the Anti-Money Laundering Act, formally putting the revised threshold into effect.
What Does the New Rule Mean for Bank Customers?
The revised threshold changes when a cash transaction becomes subject to mandatory CTR reporting based on its amount.
Previously, transactions of Rs2 million or above met the reporting threshold. Under the new arrangement, this amount has increased to Rs3 million.
However, customers should understand that the change does not establish a maximum limit on cash deposits or withdrawals. It simply adjusts the monetary threshold used for mandatory currency transaction reporting.
Banks must also continue fulfilling their separate obligations regarding suspicious transactions, regardless of whether those transactions reach the CTR threshold.
Banks Directed to Implement the Revised Requirement
The SBP has instructed presidents and chief executives of its regulated institutions to ensure that the updated reporting requirements are implemented without delay.
The central bank has also referred financial institutions to its earlier BPRD Circular Letter No. 04 of 2015, issued on January 28, 2015, and asked them to acknowledge receipt of the latest instructions.
This ensures that banks and other regulated entities update their reporting procedures in line with the government’s revised requirements.
Will the New Threshold Affect Cash Transactions?
The increase from Rs2 million to Rs3 million may change how financial institutions classify and report large cash transactions.
Nevertheless, it does not mean that cash transactions exceeding Rs3 million are prohibited or that transactions below this amount are automatically exempt from all regulatory scrutiny.
Banks remain responsible for monitoring financial activity and reporting suspicious transactions to the relevant authorities under applicable anti-money laundering regulations.
Conclusion
Pakistan’s decision to raise the mandatory cash transaction reporting threshold from Rs2 million to Rs3 million marks an update to its anti-money laundering reporting framework.
With the revised limit now in effect, banks and other regulated financial institutions must follow the SBP’s latest instructions and ensure compliance with the updated requirements.
For customers, the most important point is that Rs3 million is a reporting threshold rather than a legal ceiling on cash transactions. Existing monitoring and suspicious transaction reporting obligations also remain in place.