FBR sets new system for Customs with Directorate of Intelligence and Risk Management
The FBR has set up a new system for Customs by establishing the Directorate of Customs Intelligence and Risk Management with nationwide jurisdiction to combat smuggling, money laundering, and illegal currency movements.
KARACHI: The Federal Board of Revenue (FBR) has formally announced a new system for Customs by issuing a notification to establish the Directorate General of Customs Intelligence and Risk Management. This restructuring aims to strengthen the country’s customs operations, improve oversight, and curb illicit activities including smuggling, money laundering, and illegal currency movement.
According to the notification, the headquarters of the newly created directorate will be based in Islamabad, while regional offices will operate in Karachi, Lahore, Peshawar, Quetta, and Islamabad. In addition to the central structure, the directorate will manage a Risk Management Unit and a Cross-border Currency Movement Wing to provide specialised oversight in areas identified as high-risk.
Nationwide authority under Director General
Under this new system, the Director General of Customs Intelligence will hold authority across the country and will directly report to the FBR. The responsibilities outlined in the notification include preventing smuggling, cracking down on money laundering networks, identifying irregularities in imports and exports, implementing risk management using modern systems, and strengthening intelligence-gathering mechanisms.
By centralising authority, the FBR aims to introduce greater uniformity in customs operations. The Director General will not only supervise field operations but also provide strategic leadership in policy design, compliance strategies, and oversight of performance monitoring.
Regional operations and risk management
The notification further specifies that regional directors will be empowered to conduct intelligence operations in their respective jurisdictions. Their mandate includes taking action against smuggling, detecting duty and tax evasion, and countering illegal trade practices.
The Risk Management Unit will have a nationwide scope, working to identify potential risks during imports and exports. Its role will be critical in detecting high-risk consignments, preventing revenue leakages, and ensuring compliance with international trade regulations.
The Cross-border Currency Movement Wing has been tasked with monitoring and preventing illegal currency transfers across Pakistan’s borders. Given the growing global scrutiny of financial systems and anti-money laundering frameworks, the establishment of this wing is expected to bring Pakistan’s enforcement closer to international best practices.
Transfer of resources and committee oversight
The FBR confirmed that all resources, staff, and budgets of the previous Customs Intelligence offices have now been transferred to the new Directorate General of Intelligence and Risk Management. This consolidation is intended to avoid duplication of efforts and to create a more streamlined structure under one leadership.
In addition, the FBR has formed a special committee to oversee the transition process and address any operational difficulties that may arise during implementation. The committee has been tasked with preparing a comprehensive report within 30 days to ensure a smooth and efficient shift to the new system.
Expanded responsibilities for headquarters
According to the notification, the Director General’s responsibilities will go beyond enforcement. They will include providing strategic leadership for customs reforms, managing risk and compliance strategies, overseeing the operations of the National Targeting Centre, supervising the Customs Risk Management System, and coordinating intelligence efforts nationwide.
The headquarters will also play a pivotal role in training and capacity building for customs officers, as well as in monitoring the overall performance of the system. This is intended to ensure consistency, accountability, and adaptability as the challenges of cross-border trade evolve.
The Director of Headquarters and Targeting will specifically oversee the administrative and analytical functions of the National Targeting Centre. This centre will act as the hub for intelligence analysis and advanced targeting of shipments, helping customs officials to focus on high-risk consignments while facilitating legitimate trade flows.
Strengthening compliance and trade facilitation
By setting up the Directorate of Customs Intelligence and Risk Management, the FBR aims to create a system that balances enforcement with facilitation. The focus on risk management through advanced systems is expected to reduce unnecessary inspections for compliant traders while identifying those involved in fraud or evasion.
Officials argue that this dual approach will not only help in meeting Pakistan’s revenue targets but also enhance trade efficiency and align customs practices with international standards.
The move also reflects Pakistan’s commitments to strengthen its anti-smuggling and anti-money laundering framework under the guidelines of global watchdogs such as the Financial Action Task Force (FATF).
With the FBR setting a new system for Customs, the establishment of the Directorate General of Customs Intelligence and Risk Management represents one of the most significant structural reforms in recent years. By integrating intelligence, enforcement, and risk management under one umbrella, the FBR seeks to protect national revenue, combat illegal activities, and modernise Pakistan’s customs framework.
As the transition unfolds, the effectiveness of this new structure will depend on how well the directorate balances strict enforcement with facilitation of legitimate trade, ensuring that Pakistan’s customs system becomes both more secure and business-friendly.
