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Thursday August 11, 2022

It’s a must for real estate agents to get registered with FBR

Under the condition, it is mandatory for real estate agents to get themselves registered with the FBR and share the data of buyers and sellers

November 30, 2021
The logo of Federal Board of Revenue (FBR). File photo
The logo of Federal Board of Revenue (FBR). File photo

ISLAMABAD: The real estate agents will have to get registered with the FBR as Designated Non-Financial Business and Professions (DNFBPs) under the Anti Money Laundering Act 2010 (AMLA 2010) after the Federal Board of Revenue (FBR) on Monday slapped a mandatory condition on all housing schemes, development authorities, cooperative housing authorities and real estate agents for transfer or registration of immovable property.

This condition will apply unless the real estate agent was already registered with the FBR. Under the condition, it is mandatory for real estate agents to get themselves registered with the FBR and share the data of buyers and sellers and issue Suspicious Transaction Report (STRs), if found anyone for procuring any real estate assets beyond its known means.

The FBR and real estate agents had struck an agreement last month under which the real estate agents would scrutinise the list of proscribed organisations or individuals for facilitating any plots deal.

The Real Estate Agents Association leader, Ahsan Malik, when contacted on Monday night, said that the FBR had issued instructions in line with the agreement struck with real estate agents and now there was a need to implement this agreement in its true spirit.

According to DNFBP order number 1 issued by FBR here on Monday, the AMLA 2010 empowers Federal Board of Revenue (FBR), inter alia, to license or register its reporting entities (ROs) namely, Designated Non-Financial Businesses and Professions (DNFBPs), impose conditions on any activities by DNFBPs to prevent the offences of money laundering, predicate offences or financing of terrorism through issuance of directions or imposing conditions under the relevant provisions of the AMLA 2010.

Now, in exercise of the powers conferred under section 6A of the AMLA 2010 read with clause 1(iii) of Schedule IV ibid, and to foster the anti money laundering and countering financing of terrorism (AML/CFT) regime in Pakistan, the FBR imposed the following condition on all "Real Estate Development Authorities, Cooperative Housing Societies, and all other Housing Societies, Schemes and Firms dealing in the real estate, namely:- Condition No. 1 of 2021 No public or private Development Authority shall conduct business activity with any real estate agent for the transfer or registration of immovable property unless the Real Estate Agent is registered with the Federal Board of Revenue as a Designated Non-Financial Business and Profession (DNFBP).

"The above condition shall be disseminated to all Real Estate Agents registered or dealing with the Development Authorities, Housing Authorities Cooperative Housing Societies and other Housing Schemes dealing in development of land for residential & commercial purposes, construction and sale/ purchase and or transfer of ownership rights and also displayed on all relevant places for the information of general public. The real estate agents may also be informed to obtain Registration Certificate from the concerned Director DNFBPs once registered as DNFBP with the FBR." Any violation of this condition shall attract the penalty provision under AML Act 2010 and AML/CFT sanction rules 2020. This condition comes into effect on January 1, 2022.

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