Govt tightens noose on gold, real estate to curb dirty money

ISLAMABAD: Pakistan is stepping up efforts to combat money laundering and terror financing by strengthening monitoring of high-risk sectors, including precious metals such as gold, and real estate, government officials said on Tuesday.

The State Bank of Pakistan (SBP) has rolled out a new monitoring system aimed at detecting suspicious transactions in both financial and non-financial sectors. Authorities will now keep a closer watch on gold and other precious metal trades, which have long been considered vulnerable to illicit financial flows. Dealers and individuals in the sector will face stricter compliance requirements under the country’s anti-money laundering (AML) framework.

The real estate sector, another high-risk area for laundering illicit funds, will also come under intensified scrutiny. Regulators plan to track property transactions more closely to ensure transparency and prevent misuse for hiding illegal wealth.

Officials say these steps are part of a broader push to safeguard Pakistan’s financial system. “The focus is on improving detection, monitoring, and enforcement across both financial and non-financial sectors,” a Finance Ministry spokesperson said.

All non-financial businesses and professions will now face enhanced regulation to close gaps that could be exploited for money laundering or terror financing. Authorities are also increasing coordination among the Federal Board of Revenue (FBR), the SBP, and the Financial Monitoring Unit to assess economic losses and identify regulatory weaknesses.

In addition, the Securities and Exchange Commission of Pakistan (SECP) will make the central beneficial ownership registry, set up in July 2025, accessible online by January 2026. This will help financial institutions and law enforcement agencies identify the true owners of companies and legal entities.

The Ministry of Finance confirmed that a National Risk Assessment Report, evaluating sector-wise vulnerabilities to money laundering and terror financing, will be shared with relevant institutions by March 2026. The report is expected to guide targeted policy and regulatory actions.

Pakistan’s efforts follow its exit from the Financial Action Task Force (FATF) grey list in October 2022, with authorities accentuating that ongoing compliance is critical to maintaining financial credibility and investor confidence.