In a procedure that will come into effect from this July
“Economy” obliges real estate brokers and agents to keep data for at least 5 years
The ministry's circular comes within the framework of its supervisory and supervisory role over the business sectors.
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Safia Al-Safi: “The circular with the new procedures regulates work mechanisms in the real estate sector, and enhances oversight of its activities.”
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The Ministry of Economy issued a circular obligating brokers and real estate agents registered and licensed in the UAE, including free trade zones, to keep records and transactions data for a period of no less than five years.
supervisory role
The ministry explained that its step comes within the framework of the ministry's supervisory and supervisory role on the non-financial business sectors and professions specified in accordance with the anti-money laundering and counter-financing of terrorism legislation and laws, in a manner that enhances the status of the national economy and its positive reputation in various global markets.
She added that this circular comes in accordance with the provisions of the Executive Regulations of Federal Decree Law No. (20) of 2018 and its amendments regarding countering money laundering crimes and combating terrorist financing, and the financing of illegal organizations, which stipulate setting instructions, regulations, and forms for confronting crime for those subject to its control when necessary.
international standards
The Assistant Undersecretary of the Ministry of Economy for the Monitoring and Follow-up Sector, Abdullah Sultan Al-Fan Al Shamsi, said: “The real estate sector is one of the main economic growth engines in the country, and according to the results of the National Risk Assessment, this vital sector is among the high-risk sectors, and hence the Ministry of Economy was keen to enable best practices.” Sound financial, avoiding financial crimes, avoiding money laundering practices in all its forms in the activities of real estate agents and brokers in the country, and raising their awareness of the importance and correct ways of complying with the legislation and requirements to combat money laundering, which enhances the sector’s role in attracting safe and stable investment and advancing the wheel of sustainable development in the country. A way that complies with the best international standards issued by the Financial Action Task Force (FATF), and consolidates the position of the UAE as a leading global destination for investment and business.”
Start the application
For her part, Director of the Anti-Money Laundering Department at the Ministry of Economy, Safia Al-Safi, said that the circular with the new procedures for the real estate sector will be implemented starting from this July, as it represents an important axis to determine the working mechanisms of brokers and real estate agents registered in the country, as they are an essential element in attracting investors. Real estate and investments from all over the world, and regulates the mechanisms of work in the real estate sector, and enhances the supervision of real estate activities.
She stressed that the ministry's efforts are continuing to strengthen the regulatory and legislative frameworks for the money-laundering and counter-terrorism system in the country for various sectors, especially business sectors and non-financial professions, in accordance with international best practices, in cooperation with its partners at the local and global levels.
“Natural” and “Natural”
The new policy indicated that if the buyer or seller is a legal person, the commercial license, the statute of the legal person, the register of the real beneficiaries, a copy of the Emirates ID, or a copy of the passport for all concerned, or the Emirates ID, or a copy of the passport Travel for all shareholders or partners, but if the buyer or seller is a person or natural persons, a copy of the Emirates ID or a copy of a valid passport must be provided.
Record keeping
The circular stressed the need to keep records, transactions and related data for a period of no less than five years with all licensed registered real estate brokers and agents, and submitting a suspicious activity report does not exempt from the current obligations of real estate agents and brokers submitting the following types of reports to the Financial Information Unit through goAML system, which includes suspicious transaction report, suspicious activity report, funds freeze report, partial name match report, high risk country report, and high risk country activity report.
Necessary actions
The circular included a set of procedures that brokers and real estate agents registered and licensed in the country must abide by when practicing real estate buying and selling activity and real estate brokerage, including:
■ The obligation of real estate agents and brokers to register and authenticate identity documents, which is the Emirates ID or a copy of the passport.
■ Record and document information and data related to receipts, contracts, and purchase and sale agreements.
■ Submit a real estate transaction report via the digital platform “goAML” of the Financial Information Unit in three cases:
1. When conducting transactions for the purchase and sale of freehold real estate, in accordance with the description and determination of the law of each emirate, in the implementation of any one physical cash transaction or several transactions equal to or exceeding the amount of 55 dirhams for the whole or part of the value of the property.
2. When buying and selling freehold real estate transactions, where the payment method is virtual assets for part or the entire value of the property.
3. When conducting freehold real estate purchase and sale transactions, where the funds used to carry out the transaction were transferred from a virtual asset to cash for part or the entire value of the property.
The Ministry is keen to empower the real estate sector with the best sound financial practices.
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