FBR impose penalties to Real estate agents / Jewelers If the real estate brokers, jewelers, precious metals/stones dealers, and accountants fail to report suspicious transactions to the Financial Monitoring Unit (FMU) or do customer due diligence, the Federal Board of Revenue (FBR) will apply fines, including penalties. The FBR has published the Monetary Penalty Recovery Regulations-2023 under a S.R.O. 290 (l) 1 2023,
The FBR’s notification states that it is the AML/CFT regulatory authority for its reporting entities, which include real estate agents, jewelers, precious metal and stone dealers, and accountants who are not members of the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan.
Any reporting entity that violates any provision of sections 7(l), 7(3) to 7(6), and 7 A to 7H of the aforementioned Anti-Money Laundering Act, 2010, as well as any rules or regulations adopted thereunder, will be subject to sanctions from the FBR, including monetary and administrative penalties to the extent and in the ways that may be prescribed.
Any person who is harmed by the imposition of sanctions under this section may prefer an appeal in the way and within the time frame provided by the appropriate authorities. The penalty would also be applied to individuals who do not follow the TFS (targeted financial sanctions) laws.
Every reporting entity is required to perform customer due diligence (CDD) in accordance with the AML Act’s guidelines. Real estate professionals, jewelers, precious metals/stones merchants, and accountants, who failed to carry out the dubious transactions, would face penalties. FBR impose penalties to Real estate agents / Jewelers /others if not followed the required instructions.
The Anti-Money Laundering Act of 2010 and the rules and regulations made thereunder, and the FBR, which is the AML/CFT regulatory authority in respect of its reporting entities, have informed that only the procedure with regard to recovery of the income tax as prescribed in Chapter XVI of the Income Tax Rules, 2002, with necessary modifications, including the following, shall apply for recovery of the monetary and administrative penalties imposed under those laws.
