Real estate developers in Dubai are following stringent protocols to prevent illegal money from flowing into their projects. Anti-money laundering and combating financing of terrorism measures are in place for property investors to ensure compliance with UAE regulations and international standards. As reported in August 2022, the UAE has tightened real estate investment rules, requiring reporting of cash transactions worth over Dh55,000 to the Financial Intelligence Unit. Developers conduct due diligence on buyers and verify their source of funds to prevent any illegal activities.
Imran Farooq, CEO of Samana Developers, emphasized the importance of AML compliance and proper verification of customers before onboarding them. The UAE’s real estate market is well-regulated and fully compliant with international AML and CFT systems. The country’s removal from the FAFT Grey List in February 2024 further solidified its credibility and international reputation. Farhad Azizi, CEO of Azizi Developments, highlighted the rigorous vetting process for buyers, including identity verification and source of funds examination, before property transactions are finalized.
Madhav Dhar, co-founder and COO of ZāZEN Properties, emphasized the significance of conducting AML checks on potential clients to safeguard businesses from criminal activities. UAE developers accept various forms of payment, including cash and cryptocurrencies, with funds required to be transferred through financial institutions for due diligence. Tizian H G Raab of Azizi Developments stressed the enforcement of fund source transparency by competent authorities such as the Dubai Land Department and the UAE Central Bank.
Buyers can purchase properties using cash or cryptocurrencies, as long as the funds are legitimate and accepted by financial institutions. However, there are limits and restrictions in place to mitigate financial risks for developers in case of default payments. Imran Farooq mentioned that a quota system is implemented in Samana projects, with limits set for each buyer to manage the financial risk effectively. These measures ensure that all property transactions are conducted in a transparent and compliance-focused manner, protecting both investors and developers from potential risks.
