The Federal Board of Revenue (FBR), under the Act of Anti-Money Laundering, must ensure that the real estate agents, developers, precious metal and stones dealers, jewelers and FBR supervised accountants are registered as designated non-financial businesses and professions (DNFBP). However, financial institutions, lawyers, law firms, notaries and non-FBR supervised accountants will fall under other competent authorities and self-regulatory bodies.
The condition imposed by FBR in 2021 regarding the Real Estate Development Authorities, Cooperative Housing Societies and all other Housing Societies, Schemes and Firms dealing in real estate is “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).”
Anti-Money Laundering and Counter Financing of Terrorism Regulations in Pakistan
Pakistan is one of the countries that have ongoing problems with money laundering. To tackle this problem, Pakistan set a legal basis on financial crime by announcing an Anti-money Laundering Act in 2010. The act is applicable for both individual persons and entities. If money laundering activities are detected, penalties vary between 1 to 10 years, and if a person is a legal person, the penalty may increase up to 100million Pakistani Rupee. Moreover, Pakistan is included in the Asia Pacific Group on Money Laundering (APG). One of the crucial targets of APG is adapting AML and CTF standards, which are stated in FATF-8/40 Lists. Terrorist financing involves the use of funds that may be licit or illicit in origin and using these funds to support terrorist activity. Though terrorist financing transactions are usually smaller in value than those associated with money laundering, terrorist financing can result in tragic losses of life According to Anti-Money Laundering act there are many sanctions on the person, if found guilty, which includes limiting and restricting of businesses, revoking the license and imposing permanent or temporary ban.
Designated Non-Financial Businesses and Professionals (DNFBPs) of Pakistan
The Anti-Money Laundering Act of Pakistan has now obligated the DNFBPs to register with the Federal Board of Revenue to avoid sanctions mentioned above. The DNFBPs of Pakistan includes lawyers and law firms, notaries, real estate agents, builders, jewelers and dealers in precious metals and stones. People who lie in these categories must be registered with the Federal Board of Revenue to follow the Act of Anti-Money Laundering.