KARACHI, May 6, 2025 — In response to the sharp surge in gold prices and the growing risks of financial crimes, the Federal Board of Revenue (FBR) has intensified its efforts to monitor money laundering activities in Pakistan’s gold trade sector.
The FBR is actively scrutinizing transactions involving the buying and selling of gold, aiming to curb undocumented exchanges and bring potential taxpayers into the tax net.
According to sources within the local tax office, the FBR’s monitoring efforts are focused on jewelers who may be facilitating unregulated gold transactions. Authorities are concerned that the dramatic rise in gold prices has prompted individuals holding undocumented gold to liquidate their assets for hefty profits. Over the current fiscal year, gold prices have soared by an unprecedented 47%, with 24-karat gold per tola climbing from Rs241,700 in July 2024 to Rs356,100 as of May 6, 2025.
In light of these developments, the FBR is applying strict enforcement of Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) laws within the gold sector. Dealers in Precious Metals and Stones (DPMS) are now subject to enhanced compliance under the AML Act 2010 and FBR AML/CFT Regulations for DNFBPs (Designated Non-Financial Businesses and Professions), 2020.
All gold dealers are required to carry out Customer Due Diligence (CDD) before executing any transaction. This process involves collecting detailed identification and financial data from customers, including source of funds, proof of income, and beneficial ownership status. In high-risk cases—such as dealings with Politically Exposed Persons (PEPs)—Enhanced Due Diligence (EDD) measures must be implemented.
Additionally, DPMS are expected to promptly report any suspicious transaction related to gold sales to the Financial Monitoring Unit (FMU). Failure to comply may result in penalties or even legal proceedings. The FBR has also mandated that all gold-related transactions worth two million rupees or more must be reported as Currency Transaction Reports (CTR) to the FMU.
The FBR is also stressing the importance of maintaining comprehensive records of gold transactions for at least five years. This includes copies of identity documents, CDD forms, and transaction receipts, ensuring traceability and accountability.
This proactive move by the FBR highlights the need to formalize the gold trading sector, which has long remained vulnerable to financial crimes. With gold becoming an increasingly popular store of value amid economic uncertainty, the FBR aims to prevent its misuse in laundering illicit wealth and to ensure that gold trade contributes fairly to national revenue.