The federal government has increased the threshold for reporting large cash transactions from Rs. 2 crore to Rs. 3 crore under the Anti-Money Laundering Act.

The Ministry of Finance has issued a notification making the revised limit effective immediately.

Under the new rules, banks and other financial institutions must report cash transactions worth Rs. 3 crore or more to the Financial Monitoring Unit (FMU).

The decision was approved by the National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT).

According to the notification, the revised threshold will be used in the reporting and review of Currency Transaction Reports (CTRs) and Suspicious Transaction Reports (STRs).

The new limit replaces the previous threshold of Rs. 2 crore and applies immediately.