According to the Financial Action Task Force (FATF), Designated Non-Financial Businesses and Professions (DNFBPs) are real estate agents, dealers in precious metals, precious stones, lawyers, notaries, and other independent legal professionals and accountants. Under the recent recommendations given by the FATF to curb money laundering in Pakistan, the FBR has defined the reporting and documentation requirements, roles, and functions of these DNFBPs. The director-general for DNFBPs has issued instructions to all relevant departments to deal only with registered DNFBPs and compel dealers and real estate agents to work under the umbrella of already registered DNFBPs.
The introduction of this new regulation will help the government in regulating different sectors of the economy. The real estate sector is a largely unregulated and unplanned sector of the economy. Under this new law, registered real estate and property developers need to check the buyers and sellers’ names on the proscribed persons’ list of the United Nations. If a name of a potential buyer or seller is on the list, the developer or builder has to immediately report it through a mobile application to the concerned authorities.
Currently, in Pakistan, out of 500,000 property dealers and real estate investors/agents, only 22,000 are registered with DNFBPs. Thousands of unregistered real estate investors and property dealers continue to trade unregistered open files, affidavits, and certificates.