The Federal Board of Revenue (FBR) has issued additional restrictions on the real estate sector in order to comply with the requirements of the Financial Action Task Force (FATF).
According to the revisions made by the Federal Board of Revenue (FBR) to the Anti-Money Laundering and Counter-Terrorism Financing Regulations, the real estate sector has been barred from engaging with any banned organizations or criminals.
According to a statement issued by the country’s supreme tax collection organization, doing business with convicted criminals is forbidden under local law.
It is a significant development in terms of conformity with the FATF’s requirements.
In a previous statement, the FBR stated that every cash transaction worth Rs2 million or more for the purpose of selling or purchasing real estate must be disclosed to the government.
According to the Federal Board of Revenue (FBR), under the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regime, which was implemented to comply with the standards of the Paris-based Financial Action Task Force, rules for real estate agents (REAs) were established (FATF).
Real estate agents and builders will be forced to check the credentials of prospective purchasers and sellers of properties before entering into a transaction in an effort to prevent proscribed terrorists from transacting in real estate.