Registration with FBR Made Compulsory For Real Estate Agents

ISLAMABAD: After the decision of the creation of Single Sales Tax Portal, The Federal Board of Revenue (FBR), on Monday imposed a new law of Compulsory Registration For Real Estate Agents as Designated Non-Financial Business and Professional (DNFBPs) for all Developers, Housing Schemes, Cooperative Housing Authorities, and real estate agents for registration or transfer of immovable property. As per new conditions, it will be a must for real estate agents to share the data of buyers and sellers and issue a report of any suspicious transaction if he finds anyone procuring an asset beyond his known means. The step taken by Federal Revenue Body will help counter malpractices like money laundering and terrorism financing.

As per powers designated to FBR by the ALMA 2010, order no 1 states, to license or register its reporting entities to prevent the offenses of money laundering, predicate offense, and terrorism financing. The order says, “In the exercise of the powers conferred under Section 6A of the Anti-Money Laundering Act, 2010 read with clause 1 of Schedule IV ibid, and to foster the anti-money laundering and countering the financing of terrorism regime in Pakistan, FBR is pleased to impose the condition on all Real Estate Development Authorities, Cooperative Housing Societies, and all other housing societies, schemes, and firms dealing in the real estate.” Condition 1 strictly prohibits all public and private development authorities not to conduct any business activities with the real estate agent unless for transfer or registration of immovable property unless he gets himself registered with FBR.

It further adds, "The above condition shall be disseminated to all Real Estate Agents In Pakistan registered or dealing with the Development Authorities, Housing Authorities Cooperative Housing Societies and other Housing Schemes dealing in the development of land for residential & commercial purposes, construction and sale/ purchase and or transfer of ownership rights and also displayed on all relevant places for the information of the general public. The real estate agents may also be informed to obtain a Registration Certificate from the concerned Director DNFBPs once registered as DNFBP with the FBR." The order concludes as, “any volition of this condition shall attract the penal provisions under the Anti-Money Laundering Act, 2010 and the AML/CFT Sanctions Rules, 2020. This condition will effect from 1st of January 2022.”