KARACHI: The Federal Board of Revenue (FBR) has issued Statutory Regulator Orders (SRO) for Designated Non-Financial Businesses and Professions (DNFBRs) 2020, including real estate agents, accountants, and jewelers to comply with Finance Action Task Force (FATF).
As per the new regulations, the DNFBPs are required to register with the FBR.
The registered DNFBRs have also been directed to maintain records of their clients and customers transactions to ensure compliance with FATF conditions.
The records may be maintained on paper, electronic form or on microfilm.
The records will be inspected under laws related to Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) Regulations.
The transaction is to be recorded until the disposal of cases where transactions, customers, or instruments are involved in litigation or are required by a court of law.
In addition, the businesses announced under the initiative are instructed to comply with enquiries and orders of the relevant law enforcement agencies including FBR, Financial Monitoring Unit (FMU) of the ministry of finance, etc.
The new regulations bind all the real estate agents, accountants and jewelers to maintain a list of clients/customers cancelling transactions after failure/refusal to provide the relevant documents.
The DNFBPs are directed to apply AML & CFT measures in all their foreign branches and majority-owned subsidiaries, consistent with Pakistan requirements where the minimum AML & CFT requirements are less strict than Pakistan, to the extent that host country laws.
In case any foreign country does not permit the proper implementation of AML/CFT measures consistent with that of Pakistan requirements, the designated authority or regulator is to be informed timely.
The DNFBPs are to notify the FBR in case of ceasing operations within thirty business days after ceasing operations. The FBR shall deregister the DNFBP once the appropriate information is provided.
As per the comprehensive regulations issued for Customers Due Diligence (CDD), the real estate agents require CDD when the transactions include buying and selling of real estate.
The DNFBPs are required to obtain a copy of CNIC, NICOP, POC, Form ‘B’ (in case of minor under the age of 18 years) or National Alien Registration Card (ARC) issued by National Aliens Registration Authority (NARA) that verifies the identity of a customer or beneficial owner.
The records shall be maintained for a minimum period of five years after the business relationship is terminated.
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