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…