Government expands AML reforms to combat money laundering and improve property sector transparency
Pakistan has intensified monitoring of real-estate agents as part of broader efforts to curb black money, money laundering and terror financing through the property sector, according to official documents.
The government has prioritized reforms related to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), with a particular focus on strengthening oversight of designated non-financial businesses and professions (DNFBPs), especially real-estate agents.
Real-estate sector under tighter oversight
Officials said authorities aim to address low levels of suspicious transaction reporting (STRs) in the real-estate sector through reforms in the reporting framework and mandatory registration with the goAML system.
The measures are intended to improve financial transparency and strengthen monitoring of undocumented transactions in the property market.
Focus on beneficial ownership transparency
The Securities and Exchange Commission of Pakistan will continue efforts to improve the accuracy and availability of beneficial ownership information through its central registry system.
Authorities said compliance mechanisms would be strengthened through systematic cross-checking across multiple databases to prevent misuse of corporate entities for illicit financial activities.
Measures against trade-based money laundering
To tackle trade-based money laundering (TBML), the State Bank of Pakistan introduced a standalone regulatory framework in August 2025 requiring authorized dealers to assess and monitor TBML risks linked to customers and transactions.
Officials added that the Financial Monitoring Unit has been actively sharing financial intelligence with enforcement agencies, particularly customs authorities.
Interagency coordination to increase
The government also plans to enhance coordination among institutions by expanding data-sharing mechanisms involving foreign exchange reporting, customs records and import payment data.
Authorities believe stronger interagency cooperation will improve the monitoring of suspicious financial flows and help mitigate risks associated with undocumented economic activity.
The latest reforms are part of Pakistan’s ongoing efforts to strengthen compliance with international AML/CFT standards and improve financial sector governance.