The United Arab Emirates (UAE) announced that real estate agents, brokers, and law firms are now required to report real estate transactions where virtual currency is used as payment to financial intelligence The UAE has announced that real estate agents, brokers, and law firms are now required to report real estate transactions in which virtual currency was used as payment to financial intelligence agencies. Similarly, real estate transactions in which “the funds used in the transaction were derived from virtual assets” must also be reported.
Identification documents of the parties to the transaction must be recorded
The government of the United Arab Emirates (UAE) has announced the introduction of new reporting requirements for real estate transactions where virtual currency is used as a payment method. With the introduction of these new reporting requirements, the UAE is showcasing a “sustainable and evolving approach to the global fight against money laundering and terrorist financing.”
According to areportreleased by the WAM, the decision to change the reporting requirements came after several meetings and discussions held by the UAE’s Ministry of Economy, Ministry of Justice and Financial Intelligence Unit (FIU). Discussions centered on how real estate agents, brokers, and law firms should report real estate transactions to the FIU.
As part of the new reporting requirements, real estate agents must report to the FIU all cash transactions with “single or multiple cash payment(s) of AED 55,000 [$14,974] or more.” When it comes to digital currency, agents and brokers must report to the FIU if the payment involves the use of virtual assets. The same must also be done when “the funds used in the transaction are derived from virtual assets.”
According to the WAM report, the new reporting mechanism now requires “real estate agents, brokers, and law firms to obtain and record identifying documents of the parties to the applicable transaction, among other relevant documents related to the transaction.” The report added that the rule “applies to both individuals and entities that are parties to the real estate transactions described above.”
Reporting Requirements to Ensure Economic and Financial Stability
Meanwhile, the report quotes UAE Economy Minister Abdullah bin Tuq Al Marri praising the adoption of the new reporting requirements. This is ostensibly to ensure economic and financial stability as well as to combat fraud by businesses. Meanwhile, Justice Minister Abdullah Sultan bin Awad Al Nuaimi suggested that the adoption of the new reporting requirements will prove that the government and the private sector are working together. He said.
The introduction of reporting rules for certain transactions in the real estate sector is another example of the UAE’s coordination between the entire government and the private sector to strengthen the national framework for anti-money laundering and combating terrorism financing.
FIU head Ali Faisal Ba’Alawi said the new requirements will help “improve the quality of financial information available to the FIU. Ba’Alawi added that the requirements will help FIUs track suspicious funds and investment transfers.
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