Islamabad: The Federal Board of Revenue (FBR) – on the directions of the National Coordination Committee (NCC) on Financial Action Task Force (FTAF) – has defined the reporting requirements of real estate related transactions by making a 4 step compliance mechanism, news sources reported.
Previously, FBR had developed a four-page long datasheet to be filled by the realtors at the time of buying and selling of property. However, the updated mechanism is simplified as a result of deliberations between the members of the National Coordination Committee (NCO) and the realtors association.
After the new development, a list has been shared with Pakistan by the United Nations containing the names of 4,500 proscribed persons. The four-step process is as follows:
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.
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.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
