UAE issues new reporting requirements for real estate transactions – News

This is the country’s latest contribution to the global fight against money laundering

The Ministry of Economy (MoE) and the Ministry of Justice (MoJ), in collaboration with the UAE Financial Intelligence Unit (FIU), announced the introduction of new reporting requirements for certain real estate transactions in the UAE.

The UAE is one of the first countries to implement such a mechanism for real estate transactions involving virtual assets, marking the latest example of the UAE’s sustainable and evolving approach to the global fight against money laundering and terrorist financing. The decision was made following numerous meetings and discussions between the Ministry of Education, the Ministry of Justice, the Financial Intelligence Unit and other competent authorities in the UAE, including the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Executive Office.

All real estate agents, brokers and law firms are obliged to submit reports to the FIU regarding the sale and purchase of freehold real estate transactions in the UAE, including any of the following three payment methods, whether in part or in full property value:

1. Single or multiple cash payments equal to or higher than Dh55,000

2. Including Payments Using Virtual Assets

3. The funds used in the transaction come from the payment of virtual assets

The reporting mechanism requires real estate agents, brokers, and law firms to obtain and record the identification documents of the parties to the applicable transaction, as well as other relevant documents related to the transaction. This rule applies to individuals and corporate entities that are parties to the aforementioned real estate transactions.

Relevant private sector entities have been informed of the specific requirements of the regulatory cycler issued by the Departments of Education and Justice. Additionally, to ensure readiness, UAE authorities have partnered with real estate agents and brokers and law firms to host three separate workshops to help guide them through the new reporting requirements and improve their familiarity with FIU’s goAML system .

Given the nature of the services and products they provide, specific non-financial players include industries that are broadly exposed to the risks of money laundering and abusive business transactions and the funds they trade for money laundering or other illicit conduct they process.

The Minister of Economy, Abdulla bin Touq Al Marri, said that the adoption of the highest standards of transparency and governance, as well as the necessary regulations to ensure economic and financial stability, while combating misconduct in the business community, are priorities for the Ministry of Economy. Economy and its partners in local, federal and private sector entities.

The new requirements on reporting rules for the real estate and legal sectors ensured the development of their regulatory framework with little or no scope for manipulation or illegal practices that could negatively impact the working environment, economy and investment in these sectors, Al Marri noted.

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