The Federal Board of Revenue (FBR) has said that every cash transaction worth Rs2 million or above for the purpose of sale or purchase of property is required to be reported.
According to a report by ARY News, FBR has issued guidelines for real estate agents (REAs) under the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regime brought in to meet the requirements of the Paris-based Financial Action Task Force (FATF).
According to the guidelines, real estate developers and agents are required to file currency transaction report (CTR) on every transaction of Rs2 million or above for sale or purchase of immovable property. However, any transaction through banks for this purpose is not required to be reported.
According to the FBR, the step is aimed at checking money laundering and meeting the FATF requirements as there are instances of black money invested in the real estate sector through cash transactions.
