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The UAE has tightened the rules for investing in real estate and asked real estate agents, brokers and law firms to report cash transactions in the amount of 55,000 dirhams and above to the UAE Financial Intelligence Unit.
The Government has announced new reporting requirements for certain real estate transactions in order to strengthen its regulatory framework to combat money laundering and terrorist financing.
In addition, experts said that the government's latest move could lead to a temporary slowdown in the real estate sector, which attracted more than 150 billion dirhams of investment during the first half of 2022. It is estimated that real estate activities annually bring about 5.5% of the total gross domestic product (GDP) of the UAE.
The Ministry of Economy (Ministry of Economy) and the Ministry of Justice (Ministry of Justice) have developed new criteria for real estate transactions in partnership with the UAE Financial Intelligence Unit (FIU).
In a statement released on Monday, both ministries said that all real estate agents, brokers and law firms are required to submit reports to the FIU on real estate purchase and sale transactions in the UAE, which include any of the three payment methods listed below, whether for part or all of the property. the cost of real estate:
1. Single or multiple cash payment(s) equal to or exceeding 55,000 dirhams
2. Payments that include the use of a virtual asset
3. Payments in which the funds used in the transaction were received from a virtual asset.
