Pakistan tightens oversight on gold and precious metals to curb money laundering, terror financing

ISLAMABAD (Web Desk) – The federal government has decided to tighten monitoring of gold and other precious metals businesses to prevent money laundering and terror financing. The move comes as part of broader measures to strengthen Pakistan’s financial oversight system.

The State Bank of Pakistan (SBP) has introduced a new surveillance mechanism aimed at curbing commercial money laundering. Officials from the Ministry of Finance said the system will ensure stricter monitoring of dealers, real estate agents, and others involved in the trade of gold and precious metals.

All non-financial businesses and professionals will also be under close watch to prevent illicit money flows and the funding of terrorism. According to the IMF, Pakistan faces risks from trade-based money laundering, making these steps particularly timely.

The FBR, SBP, and Financial Monitoring Unit are reviewing the economic impact of commercial money laundering. A national risk assessment report will be shared with relevant agencies by March 2026.

Pakistan lifts ban on global trade of gold

Separately, the Securities and Exchange Commission of Pakistan (SECP) had established a central beneficial ownership registry in July 2025, which will be accessible online to financial institutions and law enforcement agencies by January 2026.

The Ministry of Finance highlighted that Pakistan exited the FATF grey list in October 2022 and continues to implement the Financial Action Task Force’s recommendations to maintain compliance and strengthen the financial system.

Officials said these measures are aimed at plugging gaps in the system, ensuring that illicit funds cannot flow through trade, precious metals, or real estate, and making Pakistan’s financial sector more transparent and resilient.