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Govt to tighten monitoring of trade in precious metals to curb money laundering, terrorist financing

SBP rolls out news monitoring system to address trade-based money laundering risks

Irshad Ansari December 16, 2025 1 min read

Photo: Reuters/ File

The federal government has decided to further tighten monitoring of the trade in precious metals as part of efforts to strengthen controls against money laundering and terrorist financing.

Officials at the Ministry of Finance said the move is aimed at reinforcing Pakistan’s anti-money laundering and counter-terror financing framework, adding that the State Bank of Pakistan (SBP) has introduced a new monitoring system to curb trade-based money laundering.

Under the enhanced oversight regime, businesses dealing in precious metals will come under closer scrutiny, along with real estate agents, dealers and other individuals associated with these sectors. Authorities said effective monitoring would be ensured across all non-financial businesses and professions to prevent money laundering and terrorist financing.

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The International Monetary Fund (IMF) has previously flagged Pakistan’s exposure to risks stemming from trade-based money laundering. In response, officials said, the SBP’s newly implemented system is designed to address these vulnerabilities.

They added that the Federal Board of Revenue (FBR), the State Bank and the Financial Monitoring Unit (FMU) are jointly reviewing the economic impact of trade-based money laundering. 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 is expected to be made available online for financial institutions and law enforcement agencies by January 2026.

Finance ministry officials also noted that Pakistan was removed from the Financial Action Task Force (FATF) grey list in October 2022, adding that the continuous implementation of FATF conditions and recommendations remain under way.