Recently, the UAE tightened real estate investment regulations, mandating brokers, agents, and law firms to report cash transactions exceeding AED 55,000. Dubai developers affirm their adherence to these protocols, ensuring no illegal funds infiltrate their projects. AMLCFT measures apply to all investors purchasing property in Dubai.
Developers in Dubai emphasize that conducting due diligence on buyers is not only a legal requirement under UAE's stringent laws but also a safeguard for their operations, ensuring the legitimacy of investor funds.
In August 2022, the UAE reinforced its real estate investment rules, requiring brokers, agents, and law firms to report all cash transactions over AED 55,000. This measure aims to combat illegal fund flows, ensuring market transparency and security.
Imran Farooq, CEO of Samana Developers, highlighted that the UAE's well-regulated real estate market fully complies with international AMLCFT compliance frameworks. He emphasized that every customer is verified before signing any agreements, with a cash transaction limit of AED 55,000 per transaction, enforced using specialized software to control and comply with AML regulations.
To ensure compliance, Samana Developers hired Complyfin, a Dow Jones company, to fully implement AMLCFT compliance measures. The UAE’s removal from the gray list in February 2024 enhanced the country's international standing, earning praise from FATF governing bodies.
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Farhad Azizi, CEO of Azizi Developments, stated that buyers must provide all necessary documents, including passport copies and UAE IDs (if applicable), when signing the Offer to Purchase (OTP). Developers rigorously review the buyer's identity, source of funds, and deposit payment details. Payments must be cleared through UAE financial institutions, ensuring compliance before acceptance.
Madhav Dhar, Co-Founder and COO of ZāZEN Properties, emphasized that they conduct thorough vetting of buyers to ensure each potential client undergoes proper AML checks before proceeding with negotiations, crucial in preventing corporate involvement in criminal activities.
While developers accept various payment methods, including cash and cryptocurrency, these funds must be transferred to escrow accounts for each project and undergo due diligence through UAE financial institutions. Tizian H G Raab, Head of PR and Communications at Azizi Developments, stated that as long as funds are legal and accepted by the respective financial institutions, there are no restrictions on purchasing property with cash or cryptocurrency.
Madhav Dhar mentioned that they accept up to USD 10,000 in cash for initial reservation of specific units but prefer payment via check or bank transfer for better management. Despite monitoring the cryptocurrency market, they are unlikely to accept it until more regulatory measures are in place.
Imran Farooq noted that most real estate investors in Samana projects purchase with cash, and cryptocurrency offers convenient payment options, making it popular. However, to manage and comply with regulations, Samana Developers impose a limit of AED 55,000 per transaction and have internal caps to manage financial risks in case of client payment defaults.
