These days, the easiest way to launder money in the least noticeable method is doing in the name of real estate. These transactions usually involve tons of money and assets. The criminals usually deceive people and get a lot of money unlawfully in exchange for a slice of land. Money laundering has emerged as one of the highly alarming concerns in Pakistan. The real estate sector is becoming increasingly stained with this crime as people continue to earn black money in plots.
Mandatory FBR registration for all real estate agents
FBR has directed all real estate agents in Pakistan to get registered before 1st January 2022 to continue services. In accordance with the mission of the Financial Action Task Force (FATF), nearly 20000 real estate agents have recently been registered by FATA in Pakistan.
Aim of this radical measure
The aim of this activity by FATF is to curb the extensive financial transactions for money laundering, terrorist financing and other fraudulent activities. This measure by FBR has helped the authority to identify and deal with suspicious investors.
The registration guidelines launched by FBR contain the title” Federal Board of Revenue (FBR) Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) – Guidelines for Real Estate Agents,” reflect the purpose of this step to educate property dealers about the compliance with counter financing of terrorism and anti-money laundering as key points discussed in the document.
Key takeaways of FBR registration of real estate agents guidelines:
Let us dive into this guideline document and get better insight into this new law introduced by FBR.
- The agent is supposed to get himself registered with the FBR under the title of non-financial businesses and professions (DNFBPs).
- Any private or public development company cannot carry on their activities as long as the real estate agent is not registered with the federal board of revenue.
- The real estate agents should get a registration certificate from the DNFBP director of FBR.
- Individuals violating this rule will be charged with the penalty as per the Anti-money Laundering Act 2010 and counter financing for terrorism sanctions.
- The respective condition is applied to all property dealers involved in any residential or commercial property dealing, sale, purchase, or construction etc.
The government have been attempting tirelessly to introduce legislation in order to track and put an end to such dealings. FBR also aims to digitize the system to enable the authorities to crack down on these unlawful real-estate activities. The FATF Recommendations developed by the organization will be a solid step in the prevention of such crimes. In case of violation of this order, real estate agents will be subjected to legal action.