Pakistan has made it mandatory for real estate agents to register with the Federal Board of Revenue (FBR), the authority overseeing taxation.
According to the FBR’s notification, no government or private developer may do business with unregistered real estate dealers. Property transfers and registrations will not be allowed for unregistered agents, the FBR said. All housing authorities and corporate housing societies are subject to abide by the new restrictions. It applies to both commercial and residential developments.
Violations will be prosecuted under anti-money laundering and terror financing laws. Agents are required to register with the FBR as designated non-financial businesses and professions (DNFBPs).
According to the report, the government was planning to introduce a licensing system for real estate dealers in September 2021. Pakistan is making the move to get off the Financial Action Task Force (FATF) grey list. The grey list is for countries considered at risk of terrorist financing.
Pakistan developed an action plan with the FATF to address the issues that led to its inclusion on the grey list in June 2018. Countries and jurisdictions on this list are under increased monitoring as a result of strategic Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) deficiencies.
As part of this effort, designated financial businesses and professions like real estate agents will be monitored for compliance with proliferation financing requirements and penalties will be imposed in the event of non-compliance.