ISLAMABAD: The International Monetary Fund (IMF) has called on Pakistan to strengthen monitoring of financial transactions in the real estate sector amid concerns over money laundering risks and weak regulatory compliance, ARY News reported, citing sources.
Key Concerns
According to sources, the IMF highlighted the low number of suspicious transaction reports from real estate and other non-financial sectors, pointing to gaps in oversight.
It also stressed the need to curb trade-based money laundering and improve transparency in beneficial ownership data.
Regulatory Issues
Sources said the IMF raised concerns over weaknesses in Pakistan’s anti-money laundering framework and financial monitoring systems, noting the risk of undeclared wealth entering the property market.
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Government Measures
Officials said the Federal Board of Revenue (FBR) has recently taken action against several housing societies over alleged undeclared sales and income.
The real estate sector is monitored under the Designated Non-Financial Businesses and Professions (DNFBP) framework, which reports suspicious transactions to the Financial Monitoring Unit (FMU).
IMF Assessment
Sources added that the IMF has termed the performance of the monitoring system inadequate and has called for stronger enforcement and compliance measures.
