ISLAMABAD: The Federal Board of Revenue (FBR) has issued notices under Anti-Money Laundering Act, 2010 to all jewellers, accountants, and developers/builders to get themselves registered with the Directorate General of Designated Non-Financial Business and Professions (DNFBPs) by January 10th, 2021.
It is learnt that the notices have been issued on December 30th, 2020 to all developers/builders, jewellers and accountants, who are already registered with the 'IRIS' system of the FBR.
The FBR has given ample time to the DNFBPs to complete the process of registration by the deadline of January 10, 2021. The rationale behind the whole exercise is to monitor and regulate their business activities and check suspicious transactions.
In this connection, the FBR has issued notices under the relevant provisions of the Anti-Money Laundering Act, 2010. According to sources, all jewellers, accountants, and developers/builders are required to register with the Portal of Directorate General (DNFBPs), irrespective of the fact that they are already registered with the sales tax or income tax departments.
In case of non-compliance, the penal provisions would be invoked against the said categories of the Designated Non-Financial Business and Professions.
Under the Anti-Money Laundering Act, 2010, the DNFBPs covers real estate agents, including housing authorities, builders, real estate developers, and property dealers; dealers in precious metals and precious stones, including jewelers and gem dealers; lawyers, notaries, other legal professionals, accountants, trusts, and company service providers etc.
The FBR has decided to completely document business of real estate agents and jewellers, who will be required to maintain a record of actual beneficial owners of immovable properties and jewellery, respectively, and report all suspicious transactions of their buyers/sellers to the FBR. Under the monitoring and compliance provisions, the record to be maintained and furnished by the real estate agents/jewelers shall be subject to spot inspection by income tax authorities, who may be assisted by other law enforcement agencies. Where the record is not maintained in the prescribed form, the business licence of the real estate agents/jewelers shall be suspended forthwith, pending further investigation into the matter. The FBR has issued special instructions regarding books of accounts, documents and records to be maintained by real estate agents/jewelers and reporting of suspicious transactions.
According to the FBR, the "designated person" or "DP" means jewelers and real estate agents to documents and record where the value of transaction, inclusive of all applicable taxes, duties, rates and cess exceeds, Rs.2,000,000 in case of immovable property and Rs1,000,000 in other cases.
Under the monitoring and compliance provisions, the record to be maintained and furnished by the real estate agents/jewelers shall be subject to spot inspection by income tax authorities who may be assisted by other law enforcement agencies. Where the record is not maintained in the prescribed form, the business licence of the real estate agents/jewelers shall be suspended forthwith, pending further investigation into the matter.
Copyright Business Recorder, 2021
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