Offices of developers/builders and jewelers: Directorate general of DNFBPs begins online inspections

ISLAMABAD: Directorate General of Designated Non-Financial Business and Professions (DNFBPs) has started full scope online inspections of the offices of developers/builders and jewellers under the Anti-Money Laundering Act, 2010.

In this connection, the developers/builders and jewellers have started receiving notices of the online inspections of the offices under the Anti-Money Laundering Act, 2010.

The agency has deputed team of tax officials to visit the offices of the developers and builders for carrying out full scope online inspections.

According to these notices, the agency has directed the developers and builders to submit the "data files of the entity's client base" and other documents including buyers and sellers of properties. The non-cooperation would result in punitive action against the developers and builders under Anti-Money Laundering Act, 2010 and other actions under rules and regulations, the agency directed.

The real estate sector has apprehended that the Directorate General of Designated Non-Financial Business and Professions (DNFBPs) and the Directorate General of Intelligence and Investigation Inland Revenue are inspecting the offices of developers/builders and jewellers after budget (2021-22), which would create harassment and panic among the entire sector. DG DNFBPs has issued several notices to the developers/builders and jewellers for compliance under the Anti-Money Laundering Act, 2010.

The questionnaire for the developers/builders and jewellers are the same and it is difficult to suddenly show compliance with all kinds of laws, conditions and legal requirements, developers and builders said.

The notices issued to all the developers and builders across Pakistan included non-compliance of registration with the FBR, delay in submitting Offsite Monitoring Questionnaire and implementation regarding provisions of Anti-Money Laundering Act, 2010 (AMLA, 2010) read with SRO 924(I)/2020 and 950(I)/2020.

The FBR warning stated: “You (developer/builder) are hereby warned to implement all the legal provisions/obligations as mentioned in AMLA, 2010 read with SRO-924(I)/2020. In future, your compliance will be checked through on-site inspections by our inspection teams against the aforementioned legal provisions at your business premises. Any default may entail imposition of sanctions as mentioned in SRO-950(I)/2020.”

The Federal Board of Revenue (FBR) has empowered certain officials of the Directorate General of Intelligence and Investigation Inland Revenue, Regional Tax Offices, and Model Customs Collectorates to monitor and document jewellers, accountants, and developers/builders under the Anti-Money Laundering Act, 2010 for assisting the DNFBPs.

Presently, real estate agents, builders, developers, money changers and jewellers are treated under same FBR SRO-924.

These businesses have no uniformity in their way of working. It is suggested that separate laws should be made for each category, keeping in view their mode of business.

The officials of the Directorate General of DNFBPs would be empowered to carryout monitoring and supervising, including conducting inspections; compelling production of information relevant to monitoring compliance; impose sanctions, including monetary and administrative penalties to the extent and in the manners as may be prescribed, upon their respective reporting entity, including its directors and senior management and officers.

Under SRO 1319(1)12020 issued by the FBR, the Directorate General, DNFBPs established for performance of functions under Section 6A of the Anti-Money Laundering Act, 2010, shall consist of the director general; directors; additional directors; deputy directors; assistant directors, and Inland Revenue Audit Officers, Inland Revenue officers, superintendents and deputy superintendents Inland Revenue, senior auditors Inland Revenue, inspectors Inland Revenue, and officers of Inland Revenue with any other designation.

Copyright Business Recorder, 2021