Real estate agents: register with FBR or lose business

The government of Pakistan has made it mandatory for real estate agents to register with the Federal Board of Revenue (FBR), the authority that oversees taxation.

No government or private developer will be allowed to do business with unregistered real estate agents, according to the notification issued by the RBF.

Unregistered agents will not be able to register or transfer properties, the RBF said.

The new restrictions apply to all housing authorities and social housing companies. It will apply to residential and commercial development projects.

Offenders will be charged under anti-money laundering and terrorist financing laws.

Agents will need to register with the FBR as Designated Non-Financial Businesses and Professions (DNFBPs).

In September, SAMAA Money announced that the government was seeking to introduce a licensing system for real estate brokers.

The move is part of Pakistan’s efforts to get off the Financial Action Task Force (FATF) gray list, which concerns countries that are on the terrorist financing radar.

After being graylisted in June 2018, Pakistan developed an action plan with the FATF to address these shortcomings. The gray list refers to countries or jurisdictions subject to heightened surveillance due to strategic gaps in the fight against money laundering (AML) and the fight against the financing of terrorism (CFT).

This includes demonstrating that designated financial businesses and professions, such as real estate agents, are monitored for compliance with proliferation finance requirements and that penalties are imposed for non-compliance.

Money laundering is a major concern and Pakistan has a year to crack down on it. Real estate is an industry where money laundering is rampant as people park their black money in plots.

At a meeting between representatives of goods dealers, the RBF and officials from the FATF cell in Islamabad in August, it was decided that goods dealers would not deal with goods with 4,500 people on the list. UN terrorist. They will also inform the government if the people on the list contact them to obtain goods.


Source link

Comments are closed.