FBR issued Conditions for Real Estate Agents. Financial Action Task Force (FATF) is the international association. Main purpose of FATF is to curb corruption and terrorism. Since 2000, FATF is working to eliminate criminality by applying rules and regulations in different countries. Those countries that do not follow those rules are on the list of FATF, which is called the grey list. Grey list countries banned doing trades and business internationally. Every year FATF releases this list and describes every country’s performance.
FATF and Pakistan’s relation is now commonly known. Pakistan saves its place in the grey list in 2018 and since then Pakistan is trying to get off this list. In 2021, Pakistan was sure to get off this list but again lose due to 3 points of FATF rules.
On 30 August, while talking to the media, Muhammad Ahsan Malik, General Secretary of Real Estate consultants Association of Islamabad and Rawalpindi, said that DNFBP’s directors-general has instructed all the relevant departments to only deal with registered DNFBPs. Due to this all property dealers and real estate agents/firms are restricted to registered themselves or work under registered DNFBPs.
FBR conditions for real estate agents is only because of FATF requirements. FBR is directly connected to it to make this happen. On the FBR portal, all requirements and documentation and role required by these DNFBPs is defined. Registered DNFBPs are in a state to fulfill these requirements.
Firstly, the real estate agents and developers will have to check their clients’ details in a list of United Nations comprising names of 4500 prohibited people. If they are not in UN lists, then it’s ok to carry out a transaction with them. Registered developers must report that person through the FBR app.
Secondly, the registered developer must keep the record of every deal like purchasing or selling. Also keep the details of the buyer i.e., CNICs with the copies of sale and purchase.
Third, any person is setting up an agreement of selling and purchasing on the behalf of a third party. The owner is required to present the complete money trail through a form generated by the FBR portal.
Fourth, A cash Transaction report should be submitted by a real estate firm. Payment can be made by the buyer’s bank account equal to the FBR value or DC rate. Money trail should be provided at any cost.
Legal requirements of DNFBP will be fulfilled by registrations societies i.e., CDA, LDA DHAs, etc.22000 DNFBPs are the registered and filers of income tax returns out of 500,00 property declares working in Pakistan. Non- filers are the focus of the directorate general of DNFBPs.
Benefits of FBR Conditions for Real Estate Agents
All these FBR conditions are to fulfill the requirements of FATF and to make Pakistan real estate agents business industry safer and more enticed. But if we deeply analyze it, then we can see that Pakistan will have the long-term benefit from it:
- Foreign direct investment will increase. Due to being on the grey list, many opportunities have been lost
- Pakistanis and ex-pats investors will be encouraged and will be starting their investments in Pakistan again. Projects like Capital smart city and Lahore smart city i.e., executive & overseas blocks are the best option for them
- Real estate and other business industries will be free of money launderers and corrupt people. Clients will loose their trust issues
Being in Grey list has impacted on real estate industry just like any other country. People are hesitant to invest in them. But this new development in the form of FBR Conditions can help this country to move along to a better future. You can always contact Makaan Solutions for investment consultation.
FBR Condition for Real Estate Agents
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