Real Estate Authority to curb black money

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SIDDEEQ SAJID

ISLAMABAD

To meet the Financial Action Task Force (FATF) requirements, Pakistan will establish ‘Real Estate Regulatory Authority’ for curbing black money and federal institutions will support this Authority.

Pakistan has effectively complied with another strong condition put forward by the Asia Pacific Group (APG) – a regional affiliate of the Financial Action Task Force (FATF) – as the state has prepared to implement measures for curbing black money in the real estate sector, sources told daily morning mail.

Sources familiar with the matter told Daily Morning Mail that the country will ensure that lands and properties are not transferred in the name of any terrorist organizations or banned outfit.

Moreover, federal institutions will support the formation of the Real Estate Regulatory Authority.

The new regulatory authority will make it mandatory for businessmen who are involved in the real estate businesses to register themselves with the authority and essential documentation of the businesses will follow.

In this regard, the Security and Exchange Commission of Pakistan (SECP) has already prepared an initial draft the establishment of the authority in accordance with the standards of the FATF.

Meanwhile, further work is being done jointly by the technical and law division of the SECP.

However, matters pertaining to taxation on the real estate sector are excluded from the scope of the authority.

Sources said that the draft for the establishment of the Real Estate Regulatory Authority could be presented in the next meeting of the federal cabinet for approval.

This year, Pakistan has made significant improvements in its systems to fight money laundering (ML) and terror financing (TF) as per international standards – in compliance with of 40 recommendations of the APG to exclude itself from the grey list, sources concluded.