NEC approves CTR threshold revision, adds PVARA to anti-money laundering law
The National Executive Committee on AML/CFT approved a revision to the Currency Transaction Report threshold. It also approved placing the Pakistan Virtual Assets Regulatory Authority in Schedule IV of the Anti-Money Laundering Act.
- The NEC approved a proposed revision to the CTR threshold.
- PVARA goes into Schedule IV of the Anti-Money Laundering Act.
- Section 28 of the Pakistan Maritime Zones Act goes into Schedule I.
- Finance Minister Aurangzeb chaired the committee's 19th meeting.
The National Executive Committee (NEC) on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) has approved a proposed revision to the threshold for Currency Transaction Reports (CTRs). CTRs are used to report cash transactions under the anti-money laundering framework. The reports reviewed do not state the new threshold figure.
The committee also approved the inclusion of the Pakistan Virtual Assets Regulatory Authority (PVARA) in Schedule IV of the Anti-Money Laundering Act (AMLA). In addition, it approved adding Section 28 of the Pakistan Maritime Zones Act, 2023, to Schedule I of the AMLA.
The decisions were taken at the committee's 19th meeting, held at the Finance Division on Tuesday and chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb. According to ProPakistani, the NEC is a high-level body that oversees policy and implementation matters related to Pakistan's AML/CFT regime.
Participants reviewed compliance with the decisions of the 18th NEC meeting, as well as overall progress on the AML/CFT framework. According to a statement issued after the meeting, the committee agreed that the framework should stay aligned with emerging financial risks. Members also stressed that it must keep pace with new technologies and called for stronger analytical capabilities at the relevant institutions.
The meeting reviewed the performance and institutional capacity of the Financial Monitoring Unit (FMU), which handles financial intelligence on money laundering and terrorist financing. The committee also discussed initiatives involving Artificial Intelligence and Machine Learning as part of its review of the framework.
Aurangzeb said timely follow-up on decisions and effective coordination among the relevant institutions were necessary to strengthen the regime. He called for a clear roadmap with defined timelines to strengthen the FMU's analytical and operational capacity.
He described the NEC as an effective strategic forum for the AML/CFT framework. According to the minister, it helps ensure timely coordination, inter-agency cooperation and consistent monitoring so that the measures discussed are implemented effectively. The meeting also agreed on the need to keep an effective framework able to respond to emerging risks in the financial sector.
Why it matters
Banks and virtual asset businesses in Pakistan face revised cash transaction reporting and oversight rules. PVARA's inclusion in the Anti-Money Laundering Act brings the virtual assets regulator under that law.
