SBP Raises Cash Reporting Threshold to Rs3m
The State Bank of Pakistan has raised the cash reporting threshold to Rs3 million, so banks will now report fewer large cash transactions to the Financial Monitoring Unit. The change took effect at once on Thursday, under a circular the central bank sent to banks and other regulated firms.
The cash reporting threshold had stood at Rs2 million. The State Bank said the revised limit applies to Currency Transaction Reports, known as CTRs, which banks file with the Financial Monitoring Unit (FMU) under the Anti-Money Laundering Act 2010.
Cash reporting threshold: what changed
Under the new rule, banks and other reporting entities must file a CTR only when a cash transaction reaches Rs3 million or more. Smaller cash deals no longer trigger a report. The State Bank said complete, accurate and updated information in CTRs filed by regulated entities was essential to build quality financial intelligence reports.
The threshold had stood at Rs2 million since January 2015, when it was set through SRO 73(I)/2015. The same Rs2 million figure appeared in the FMU Guidelines for Reporting Entities 2021. The new limit raises it by Rs1 million, a 50 per cent increase.
The State Bank acted on a Finance Division notification, No. 3(40) AML/2025-P-002-0001, dated November 11, 2026. That notification changed the earlier 2015 statutory order. Business Recorder reported the circular on Thursday, and Dawn carried the same announcement in its Friday edition. The State Bank said in the circular: “The CTR threshold has been increased to Rs3 million as the minimum amount for reporting CTR to the FMU with immediate effect.”
How CTRs differ from suspicious reports
A CTR is not the same as a suspicious transaction report. A bank files a CTR when a cash deal meets the set amount, even if nothing about the deal looks wrong. The FMU collects these reports, studies them and looks for patterns that may need a closer look.
A suspicious transaction report, known as an STR, works the other way. A bank files one when a deal looks odd or points to money laundering or terror financing, whatever the amount. The new threshold does not change that duty. Banks must still flag suspicious deals at any value.
Under the Anti-Money Laundering Act 2010, banks must file CTRs with the FMU at once, and no later than seven working days after the deal. The FMU sits within the State Bank and acts as the country’s financial intelligence unit. It passes on useful leads to the police, the Federal Board of Revenue and other agencies.
Why the limit moved now
The change did not come out of thin air. The National Executive Committee on Anti-Money Laundering and Countering Financing of Terrorism approved the higher limit in late October. The committee, led by Finance Minister Muhammad Aurangzeb, sets the reporting limits for banks and other firms that handle cash.
The October approval set the policy. The State Bank circular this week puts it into force. Banks must now update their systems so that only cash deals of Rs3 million or more trip a CTR. Deals below the line will no longer clog the FMU inbox, which should let analysts focus on the reports that matter.
For ordinary account holders, the change means less paperwork on large but routine cash deals. A business that banks Rs2.5 million in cash will no longer trigger an automatic report. A deal of Rs3 million or more still will. The move also fits a wider push to ease the reporting load on banks while keeping the anti-money laundering net in place.
The State Bank has been active on several fronts this year. It has pushed banks to hire more women, and the wider financial system keeps drawing attention, from the FBR missing its tax target by Rs94 billion to remittances nearly covering the trade deficit. Markets will watch whether the lighter reporting load changes how banks handle cash, and the gold market has already seen sharp moves while the PSX raised Rs70 billion through a sukuk auction.
Frequently asked questions
What is the new cash reporting threshold?
The State Bank has raised the Currency Transaction Report threshold to Rs3 million, effective at once. Banks must file a CTR with the Financial Monitoring Unit only when a cash transaction reaches Rs3 million or more.
What was the old threshold?
The old threshold was Rs2 million. It had stood at that level since January 2015, when it was set through SRO 73(I)/2015, and it also appeared in the FMU Guidelines for Reporting Entities 2021.
What is the difference between a CTR and an STR?
A CTR is filed when a cash transaction meets the set amount, even if it looks normal. An STR is filed when a transaction looks suspicious, whatever the amount. The new threshold changes CTRs only.
How quickly must banks file a CTR?
Under the Anti-Money Laundering Act 2010, banks must file CTRs with the Financial Monitoring Unit at once, and no later than seven working days after the transaction.
Who approved the change?
The National Executive Committee on Anti-Money Laundering and Countering Financing of Terrorism, led by Finance Minister Muhammad Aurangzeb, approved the higher limit in late October. The State Bank put it into force through a circular this week, acting on a Finance Division notification dated November 11, 2026.
