UAE Real Estate Investment Rules Tightened: Developers Ensure Compliance with AMLCFT Measures
Developers in UAE Ensure Stringent Measures Against Illegal Money Flows in Real Estate Sector
In response to recent claims regarding the UAE’s real estate sector serving as a safe haven for wanted criminals, developers in Dubai have affirmed that they follow strict protocols to prevent illegal money from entering their projects. The UAE has implemented Anti-money laundering and combating financing of terrorism (AMLCFT) measures to ensure transparency and legitimacy in real estate transactions.
Imran Farooq, CEO of Samana Developers, emphasized the importance of due diligence in verifying the legitimacy of property buyers. “We have an AML compliance system in place and every customer is verified before being brought on board. The cash payment is limited to Dh55,000 per transaction, and we use specialized software to ensure compliance with international standards,” Farooq stated.
Similarly, Farhad Azizi, CEO of Azizi Developments, highlighted the rigorous examination process for buyers, including providing documents and clearing payments through UAE financial institutions. “Only once the payment clears compliance will we proceed with the property transaction,” Azizi explained.
Madhav Dhar, co-founder and COO of ZāZEN Properties, emphasized the importance of conducting thorough AML checks on potential clients to safeguard against criminal activities.
Cash and Cryptocurrencies Accepted
Developers in the UAE accept various forms of payment, including cash and cryptocurrencies, but all funds must be transferred through UAE financial institutions. Tizian H G Raab, head of PR and communications at Azizi Developments, reiterated the importance of transparency in fund sources enforced by competent authorities.
Madhav Dhar mentioned that while they accept cash for reservation amounts, even that is now requested in the form of a cheque or bank transfer for efficiency. The use of cryptocurrencies in real estate transactions is being monitored for potential risks.
Quota for Buyers
Imran Farooq disclosed that Samana Developers set a limit of Dh55,000 per transaction for cryptocurrency payments, with additional restrictions on bulk buyers to manage financial risks effectively.
Overall, developers in the UAE are committed to upholding stringent measures against illegal money flows in the real estate sector, ensuring transparency and compliance with international standards.
