The Federal Board of Revenue (FBR) has instructed realtors and builders to exchange the details of potential buyers and sellers of properties before brokering a contract. This is in order to meet the requirements of the Financial Action Task Force (FATF).
According to sources, the decision was made to prohibit banned terrorists from making property deals.
A list of 4,500 proscribed terrorists has been shared with Pakistani authorities in order to meet the requirements of the Financial Action Task Force (FATF) in accordance with UN Security Council Resolutions 1267 and 1373.
Sources indicated that the FBR and real estate brokers met at the FBR’s headquarters on August 17, 2021, under the supervision of high-ranking members of the National Coordination Committee (NCO).
During the conversation, it was revealed that real estate agents will disclose information about property sellers and buyers in order to comply with the FATF.
FBR Develops App for realtors to check in prohibited terrorists
The FBR has built an app that contains the names of around 4,500 prohibited terrorists, and real estate dealers will be required to use it to create a checklist.
A Suspicious Transaction Report (STR) will be created if the names and CNIC numbers of potential buyers match those of any of the terrorists. Furthermore, real estate brokers will keep track of both sellers and buyers.
The reporting obligations and functions of developers or builders listed as Designated Non-Financial Business and Professions have been clearly specified by the FBR (DNFBPs). For realtors, developers and builders registered as DNFBPs, the FBR portal will upload the relevant requirements.
Each developer and builder will have to look up the prospective buyer’s or seller’s name on the United Nations’ list of 4,500 people who are prohibited from buying or selling. There will be no problem carrying out transactions if the buyer’s or seller’s name is not on the list. If any of the names appear on the list, the developer and builder must promptly generate STRs to notify the relevant authorities.
A paperwork about the real beneficial owner of the property will also be submitted by the prospective buyer and seller. When a third party buys property on someone else’s behalf, the true beneficial owner must be declared on a form. A money trail will be used to track down the true beneficial owner.