Islamabad: According to press reports, the Federal Board of Revenue (FBR) has established the reporting criteria for real estate linked transactions by creating a four-step compliance system, as directed by the National Coordination Committee (NCC) on the Financial Action Task Force (FTAF).
The FBR has instructed the 22,000 Designated Non-Financial Business and Professions (DNFBPs) to assist the FBR in meeting worldwide FATF compliance standards, according to the information.
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At the time of buying and selling a property, the agent or DNFBPs will look up the person’s name and CNIC on the FBR’s list of proscribed persons. If a person is not on the list, the transaction will advance to the next payment step. If the individual is discovered to be on the list, a Suspicious Transaction Report (STR) will be created and forwarded to the authorities.
Copies of purchasers’ and sellers’ CNICs will be maintained for future reference. Realtors are expected to keep a record of transactions over a period five years. The buyer and seller would also fill out a document indicating who is the true beneficial owner of the property. This would improve the money trail mechanism’s tracing. The payment would be paid through the purchaser’s bank account for the stated value of the FBR value or DC rate of the property, as applicable.
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For the acquisition of immovable properties, a money Trail must be available. After the passage of the new Terms of References (ToRs) the realtors who have not been registered with FBR as DNFBPs will either be directly dealt with through the DNFBPs directorate or they will work under other registered DNFBPs.
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