FBR Registration for Real Estate Agents Becomes Mandatory

FBR has issued some special instructions for Real Estate Agents registration against the powers given to FBR by the AMLA ACT 2010.

On 25th November FBR

Subject: Condition No. 1 of 2021 for Development
Authorities/Housing Schemes or Societies (Builders and
Developers)
The Anti-Money Laundering Act, 2010 (hereinafter “the AMLA, 2010”) empowers the Federal Board of Revenue (FBR), inter alia, to license or register
its reporting entities (R0s) namely, Designated Non-Financial Businesses and Professions (DNFBPs), impose conditions on any activities by DNFBPs
to prevent the offenses of money laundering, predicate offenses or financing of terrorism through the issuance of Directions or imposing Conditions under the relevant provisions of the AMLA, 2010.

Now, in the exercise of the powers conferred under section 6A of the AMLA, 2010 read with clause 1(iii) of Schedule IV ibid, and to foster the antimoney laundering and countering the financing of terrorism regime in Pakistan, FBR is pleased to impose the following Condition on all Real Estate
Development Authorities, Cooperative Housing Societies, and all other Housing Societies, Schemes and Firms dealing in the real estate, namely:-

Condition No. 1 of 2021

No public or private Development Authority shall conduct the business activity with any real estate agent for the transfer or registration of
immovable property unless the Real Estate Agent is registered with the Federal Board of Revenue as a Designated Non-Financial Business
and Profession (DNFBP).

The above Condition shall be disseminated to all Real Estate Agents registered or dealing with the Development Authorities, Housing Authorities
Cooperative Housing Societies and other Housing Schemes dealing in 1 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 Registration Certificates from the concerned Director, DNFBPs once registered as a DNFBP with FBR.
Any violation of this Condition shall attract the penal provisions under the AML Act, 2010 and the AML/CFT Sanctions Rules, 2020.
This Condition comes into effect on January 1, 2022.

find the fbr circular in this link

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