The FBR is the AML/CFT regulatory authority in respect of its reporting entities, which include real estate agents, jewelers, dealers in precious metals and precious stones, and accountants who are not the members of the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan. The FBR’s new rules require these entities to report any suspicious transactions to the FMU or comply with the TFS regulations. Failure to do so will result in penalties, including monetary and administrative sanctions.
Recovery of Monetary and Administrative Penalties:
According to the FBR, 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, consistent with the provisions of the Anti-Money Laundering Act, 2010 (VII of 2010) and rules and regulations made thereunder shall apply for recovery of the monetary and administrative penalties imposed under the AML/CFT Sanctions Rules, 2020.
Appeals:
If any person is aggrieved by the imposition of sanctions under the FBR’s AML/CFT Sanctions Rules, 2020, they may prefer an appeal in such manner and within such a period to such authority as may be prescribed.
Conclusion:
The FBR’s AML/CFT Sanctions Rules, 2020 are aimed at preventing financial crimes and money laundering by requiring certain reporting entities to report suspicious transactions to the FMU or comply with the TFS regulations. Failure to do so will result in monetary and administrative penalties. Reporting entities, including real estate agents, jewelers, dealers in precious metals and precious stones, and accountants, who are not the members of the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan, should take note of these new rules and ensure that they comply with their reporting requirements to avoid any sanctions.