The Federal Board of Revenue (FBR) has required banks and electronic money institutions to report financial transactions exceeding Rs. 10 million to its central data hub under the Finance Act 2026.

The new requirement will allow the tax authority to automatically match large financial transactions against taxpayers’ declared income and banking information, potentially flagging inconsistencies for further scrutiny.

Under the Finance Act 2026, banks and electronic money institutions must submit financial information of account holders involved in transactions above the Rs. 10 million threshold to the FBR’s central data hub.

The automated system is designed to help the FBR identify cases where reported income does not appear consistent with significant financial activity.

The measure is part of the government’s broader effort to digitize tax administration and rely more heavily on automated data analysis to identify potential tax discrepancies.

By linking financial transaction data with existing taxpayer records, the FBR aims to improve monitoring of high-value financial activity and strengthen tax compliance without relying solely on traditional manual checks.