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Under the AML Act, the FBR puts conditions on developers and builders

KARACHI: Under the Anti-Money Laundering AML Act of 2010, the country’s supreme tax agency has put a stipulation on builders and developers regarding property transfer and registration.

The Federal Board of Revenue (FBR) issued a notification on Monday, stating that the AML 2010 empowered the revenue board, among other things, to licence or register its reporting entities, namely designated non-financial businesses and professions (DNFBPs), impose conditions on any activities by DNFBPs to prevent money laundering, predicate offences, or terrorism financing through the issuance of directives or imposing conditions under the rele

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Once registered as a DNFBP with the FBR, real estate agents may be advised to get registration certificates from the relevant director of DNFBPs.

“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 regime in Pakistan, the FBR is pleased to impose 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: “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.”

The revenue board said the above condition would be disseminated to all the real estate agents registered or dealing with the development authorities, housing authorities, cooperative housing societies and other housing schemes, dealing with the development of land for residential and 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.

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The real estate agents may also be informed to obtain registration certificates from the relevant director of DNFBPs once registered as a DNFBP with the FBR.

Any violation of this condition would attract penal provisions under the AML Act, 2010 and the AML/CFT Sanctions Rules, 2020, the FBR added.

This condition comes into effect from January 1, 2021.

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