FBR Uncovers Alleged Money Laundering by 70 Real Estate Agents in Pakistan
ISLAMABAD – The Federal Board of Revenue (FBR) has reportedly identified at least 70 real estate agents allegedly involved in money laundering through illicit dollar transfers to the United Arab Emirates.
According to a recent report published by a local source, these agents have been using the Hundi-Hawala system for transferring funds to invest in properties abroad, which has had a direct impact on Pakistan’s exchange rate.
Authorities claim that these individuals have been accumulating large amounts of cash—primarily in US dollars—from the open market and channeling them into the Gulf real estate sector. The scale of these transactions has not only influenced currency fluctuations but has also raised concerns regarding legal violations.
Citing insider information, the report states that a comprehensive list of real estate agents involved in such practices has been compiled. Federal investigators are expected to conduct further inquiries to uncover the full extent of the operations.
Meanwhile, real estate developers have expressed concerns over the government’s proposed amendments to tax laws. They argue that increasing the no-questions-asked threshold for foreign currency transactions from Rs10 million to anywhere between Rs25 million and Rs50 million could accelerate capital flight to the UAE.
The Tax Laws Amendment Bill 2024, currently under review by the National Assembly Standing Committee on Finance and Revenue, has sparked debates among industry leaders.
Given the routine nature of foreign exchange transfers within the real estate sector, experts emphasize the need for a thorough investigation. Authorities, including the FBR and other regulatory bodies, are now actively working to assess the broader implications of these activities, not only for the property market but for Pakistan’s overall economic stability.
