Daily Insights

FBR to Suspend Unregistered Real Estate Agents

By 30/11/2021 March 25th, 2022 0 Comments

The Federal Board of Revenue (FBR) has announced to suspend unregistered real estate agents by January 1st, 2022. The government is tightening the noose on who can do property deals by introducing a registration system for real estate agents in Pakistan. The country has been on the FATF’s grey list for deficiencies in its counter-terror financing and anti-money laundering regimes. Pakistan has taken swift steps towards improving its AML/CFT regime.

Recently, the FBR has announced a mandatory condition for real estate agents to get registered as Designated Non-Financial Businesses and Professions (DNFBPs) under the Anti Money Laundering Act 2010 (AMLA 2010). The FBR prevents the offences of money laundering, predicate offences, or financing of terrorism by DNFBs through imposing conditions under the relevant provisions of the AMLA, 2010. The tax department further added that no public or private development authority shall conduct the business activity with any real estate agent for the transfer or registration of immovable property unless the real estate agent is registered with the FBR as a DNFBP. Any violation of this condition shall attract the penalty provision under AML Act 2010 and AML/CFT sanction rules 2020.

The government has made substantial progress in making its counter-terrorist financing systems stronger and more effective. Pakistan has made progress, but It needs to exit the grey list because a potential downgrade to the blacklist can have serious implications for the country. Being on the blacklist means the country’s banking system will be regarded as one with poor controls over AML and CFT.

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