Notice to submit information on questionnaire by DNFBP as per AMLA/CFT – (Real Estate)

NOTICE TO REGISTER UNDER SECTION 6A(2)(A) OF THE ANTI MONEY LAUNDERING ACT, 2010,
READ WITH SRO 924(I)/2020 DATED 29TH SEPTEMBER, 2020.

Whereas it has been ascertained that as per available record, you are liable to be registered as a Designated Non-Financial Business and Profession under section 6A(2)(a) of the Anti Money Laundering Act, 2010, read with SRO 924(I)/2020 dated 29th September, 2020.

Therefore, you were provisionally registerd as a DNFBP and are now required to provide the following information via DNFBP Management System/Portal that can be accessed using the existing IRIS user ID and Login:

a. Complete profile of your businesses entity, duly updated, as provided by you at the time of registration for Income Tax and Sales Tax purposes to FBR.

b. Complete profiles of your owners, partners, directors, associates and important office bearers. This information should include complete names and CNICs of above mentioned persons.

c. Details of criminal record/police verification report of individuals as mentioned at serial no b above.

2. You are also required to register yourself with FBR as DNFBP via the above mentioned DNFBP Management System and/or the DNFBP Mobile App which can be downloaded from link mentioned below:
https://play.google.com/store/apps/details?id=com.pral.dnfbp
https://apps.apple.com/us/app/dnfbp/id1560978125

3. Registration and/or Reply to this notice may be uploaded on the DNFBP portal available on your IRIS ID within fifteen (15) days of the receipt of this notice. In case you do not fall in the category of DNFBP, relevant updating of record in IRIS may be ensured before submission of reply to this notice. In case of non-compliance, it will be presumed that you are a DNFBP and relevant provisions of law will apply accordingly.

4. Please note that failure to comply with this notice will make you liable to sanctions provided under Anti Money Laundering Act, 2010 read with SRO 924(I)/2020 Dated 29th September, 2020 and SRO 950(I)/2020 dated 1st October, 2020 without further notice.

Notice to Submit Information on Questionnaire by DNFBP as per AMLA/CFT (Real Estate): What to Do

Receiving a notice from the Federal Board of Revenue (FBR) to submit information as a Designated Non-Financial Business and Profession (DNFBP) under the Anti-Money Laundering Act (AMLA), 2010, can be daunting for real estate professionals.

Below we will explain what the notice means, your obligations, the step-by-step process for compliance, and best practices to avoid penalties.

Understanding the DNFBP Notice: Context and Legal Basis

What is a DNFBP?
A DNFBP (Designated Non-Financial Business and Profession) includes real estate agents, builders, developers, property brokers, jewelers, and accountants involved in transactions that may expose them to money laundering or terrorist financing risks456.

Why Did You Receive the Notice?
You received this notice because, according to FBR records, your business is provisionally registered as a DNFBP. Under Section 6A(2)(A) of the Anti-Money Laundering Act, 2010, and SRO 924(I)/2020, you are required to provide detailed information to ensure compliance with AML/CFT (Anti-Money Laundering/Counter Financing of Terrorism) regulations1.

Key Requirements Outlined in the Notice

The notice requires you to submit specific information through the DNFBP Management System/Portal using your existing IRIS user ID and login13. Here’s a summary of what you need to provide:

Failure to comply may result in sanctions as per the AMLA and relevant SROs1.

Step-by-Step Guide: How to Respond to the DNFBP Notice

1. Gather Required Documentation

Before starting the registration or information submission process, collect the following documents:

• Certificate of incorporation or registration

• Business license

• Articles of association (if applicable)

• List of directors, partners, and shareholders with CNICs

• Business plan and AML policy

• Proof of compliance officer appointment

• Criminal record/police verification certificates

2. Access the DNFBP Portal

• Log in to the DNFBP Management System using your IRIS credentials.

• Alternatively, download the DNFBP mobile app (available for Android and iOS) for easier access.

3. Complete and Update Your Business Profile

• Ensure your business profile is accurate and up-to-date, matching the information provided during your tax registration.

• Update any changes in address, ownership, or business activities.

4. Submit Details of Owners, Partners, and Directors

• Enter complete information for all key individuals, including full names, CNICs, and positions.

• Upload scanned copies of CNICs and other identification documents.

5. Provide Criminal Record/Police Verification

• Upload police verification certificates or details of any criminal records for all listed individuals.

• Ensure documents are recent and authentic.

6. Register as DNFBP with FBR

• If not already done, complete your DNFBP registration via the portal or mobile app.

• Follow the on-screen instructions and upload all required documents in PDF format.

7. Submit the Application/Reply to the Notice

• Review all information for accuracy.

• Submit your response within 15 days of receiving the notice to avoid penalties.

AML/CFT Compliance Obligations for Real Estate Agents

Why AML/CFT Compliance Matters

Money laundering and terrorist financing threaten the integrity of Pakistan’s financial system and real estate market. DNFBPs are often targeted for illicit transactions due to the high value and frequency of property deals456.

Key Compliance Requirements

Customer Due Diligence (CDD) Checklist

Frequently Asked Questions (FAQs)

What if I Don’t Respond to the Notice?

Failure to respond or provide the required information within the stipulated timeframe will result in sanctions under the AMLA, including possible fines and restrictions on business operations.

How Do I Know if I Am a DNFBP?

If you are involved in real estate transactions (buying, selling, developing property) or related professions, you are likely classified as a DNFBP456.

What is the Role of the Compliance Officer?

The compliance officer ensures your business implements AML/CFT policies, conducts due diligence, reports suspicious transactions, and serves as the point of contact with FBR and FMU5.

Do I Need to Update My Information Regularly?

Yes, you must keep your business and ownership information current in the DNFBP portal and update whenever there are changes.

Best Practices for Real Estate DNFBPs

• Develop a Written AML/CFT Policy: Tailor your policy to your business’s specific risks and regularly review it for updates.

• Conduct Regular Training: Ensure all staff understand AML/CFT obligations and can identify suspicious activity.

• Maintain Comprehensive Records: Keep organized records of all transactions, due diligence checks, and internal communications for at least five years.

• Engage with Regulators: Respond promptly to notices and cooperate with FBR inspections or audits.

• Use Technology: Utilize the DNFBP portal and mobile app for efficient compliance management.

Common Pitfalls and How to Avoid Them

Penalties for Non-Compliance

Non-compliance with AMLA/CFT obligations can result in:

• Financial penalties

• Suspension or revocation of business licenses

• Criminal prosecution for willful violations

• Reputational damage and loss of business opportunities

Conclusion

Receiving a DNFBP notice from FBR is a serious regulatory matter. By understanding your obligations, promptly gathering and submitting the required information, and implementing robust AML/CFT controls, you can ensure compliance, avoid penalties, and contribute to a safer, more transparent real estate sector in Pakistan.