Government Tightens Oversight of Gold, Precious Metals Trade

Islamabad: The government has decided to further strengthen oversight of businesses dealing in gold and other precious metals as part of its efforts to combat money laundering and terrorist financing.

According to official documents, the authorities have resolved to enhance the anti-money laundering (AML) and counter-terrorist financing (CTF) framework by tightening monitoring of the trade in precious metals, including gold. Real estate agents, dealers, and individuals associated with these sectors will be placed under stricter scrutiny. All non-financial businesses and professions will also be effectively monitored to prevent money laundering and terror financing activities.

The move comes amid concerns raised by the International Monetary Fund (IMF), which has noted that Pakistan faces risks related to trade-based money laundering. To address these challenges, the State Bank of Pakistan has introduced a new monitoring system aimed at curbing trade-based money laundering.

The Ministry of Finance stated that institutions including the Federal Board of Revenue (FBR), the State Bank of Pakistan, and the Financial Monitoring Unit are jointly assessing the economic impact of trade-based money laundering. A National Risk Assessment report will be shared with relevant institutions by March 2026.

In addition, the Securities and Exchange Commission of Pakistan (SECP) established a Central Beneficial Ownership Registry in July 2025. This registry is expected to be made available online for financial institutions and law enforcement agencies by January 2026, enhancing transparency and accountability in business ownership.

Officials from the Ministry of Finance highlighted that Pakistan was removed from the Financial Action Task Force (FATF) grey list in October 2022 and that the country continues to implement FATF conditions and recommendations to strengthen its financial system and prevent illicit financial flows.