AML Compliance in UAE: Best Practices for Real Estate Agents in UAE
The real estate industry is classified as DNFBP (designated non-financial businesses and professions) under the AML law in UAE, and it is a highly vulnerable industry for money laundering. Real estate agents have to be more conscious of AML risks and comply with AML regulations in the UAE by fulfilling its requirements. Here is a guide on AML compliance obligations for real estate agents and the best practices they can adopt.
Our expert AML compliance officers at Jitendra Chartered Accountants help real estate agents comply with AML regulations and make customised policies to protect them from money laundering and financing of terrorism.
AML Compliance Obligations for Real Estate Agents in UAE
Following is a quick guide on AML compliance requirements for real estate agents in UAE;
- Registration with FIU
Real estate agents are required to register with the Financial Information Unit using the goAML portal. Details of the business and the AML officer will be required for this.
- Appoint an AML Officer
Appointment of a qualified AML compliance officer is also mandatory for a real estate business in UAE. Such a compliance officer should be authorised to perform his services.
- Conduct Risk Assessments
A real estate agent is required to execute regular risk assessments in his/her organisation with the assistance of the appointed AML officer. This needs to be done to mitigate the chances of money laundering and terrorism financing crimes.
- AML Policy & Control
Real estate agents are required to integrate tailored AML and CFT policies in accordance with the operations and nature of activities being conducted by the business. Complete control of AML is essential for real estate agents.
- CDD (Customer Due Diligence) Measures
Real estate agents have to adopt CDD measures to identify and verify their customers and business relationships. The reliability and verification should be based on reliable sources. Maintaining and updating customer information is a prerequisite for real estate agents in the UAE.
- Monitor your Transactions
Real estate agents need to keep an eye on every transaction they engage in and suspicious transactions should immediately be reported to the FIU. And any cash collection for more than AED 50,000 or virtual currency should be submitted on GoAML through REAR Report.
- Comply with TFS (Targeted Financial Sanctions)
Real estate agents in the UAE need to comply with targeted financial sanctions and keep a compliance policy for the same and also register on the UAEIEC website. This will allow real estate agents to receive alerts from EOCN (Executive Officer for Control and Non-Proliferation) and they will be able to screen every new member, partner or relationship against the UAE Local Terrorist List and UN Consolidated List.
- Identify & Report Suspicious Activities
Real estate business’ AML policies must be strong enough to detect suspicious activities and these activities must be reported immediately to FIU.
- Train your Staff
Give AML and CFT training to your employees and other members of the organisation at least once a year. Teach them AML regulations and policies.
- Govern AML Regularly
The management of the real estate business must govern AML compliance and help improve AML policies in the organisation. The work of a compliance officer must be monitored by the higher management.
Best AML Practices for Real Estate Agents in UAE
According to Article 16 of Federal Decree-Law No. 20 of 2018, real estate agents can adopt the following best practices to comply with AML regulations in UAE;
- Continuously look for risk factors and perform risk assessments. Document and record your assessment results in an accurate form to report to the regulatory authority when required.
- Implement important due diligence measures and also keep updating your due diligence measures to ensure accuracy.
- Never conduct a commercial or financial transaction with any fictitious or anonymous name.
- Implement an internal control policy and continuously update it.
- Keep track of updates from competent authorities and their directives so that you can promptly apply them.
- Keep records of each and every transaction and ensure the accuracy of records.
Why Choose Jitendra Chartered Accountants?
Our AML professionals at JCA help real estate agents know and fulfil their liabilities towards AML regulations. We also help real estate agents in risk assessments and suggest useful policies to mitigate any AML risks. Our AML consultants have strong domain knowledge and can provide you with comprehensive guidance over any AML and CFT matter.