The United Arab Emirates (UAE) said that real estate agents, brokers and law firms are now required to report real estate transactions using virtual currencies as payment to the Financial Intelligence Unit. Likewise, real estate purchases or sales where “the funds used in the transaction were derived from virtual assets” must also be reported.
Identification documents of all parties to the transaction must be recorded
The government of the United Arab Emirates (UAE) says it is introducing new reporting requirements for real estate transactions that use virtual currencies as payment methods. With the introduction of these new reporting requirements, the UAE is demonstrating its “sustainable and evolving approach to combating money laundering and terrorist financing globally”.
according to a Report The decision to change reporting requirements, issued by WAM, follows several meetings and discussions between the UAE’s Ministry of Economy, Ministry of Justice and the Financial Intelligence Unit (FIU). Discussions focused on how real estate agents, brokers and law firms should report real estate purchases or sales to the FIU.
As part of new reporting requirements, real estate agents must report all cash transactions for “single or multiple cash payments” [are] equal to or higher than AED 55,000 [$14,974]” to the FIU. In the case of digital currencies, agents and brokers must report to the FIU when payments include the use of virtual assets. When “the funds used in the transaction” [are] 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 the identification documents of the parties to the applicable transaction, as well as other relevant documents related to the transaction.” The report added that the rules Will apply to “individuals and corporate entities that are parties to the above real estate transactions”.
Reporting requirements to ensure economic and financial stability
Meanwhile, the report, citing UAE Minister of Economy Abdullah bin Touk Al-Mari, praised the adoption of new reporting requirements, which ostensibly not only ensured economic and financial stability, but also cracked down on corporate malfeasance. Behavior. Attorney-General Abdullah Sultan Bin Awwad Al Nuaimi suggested the introduction of new reporting requirements to demonstrate that the government and the private sector are working together. He says:
The introduction of reporting rules for certain transactions in the real estate industry is another example of how the UAE is coordinating with the government and the private sector to strengthen the national framework for anti-money laundering and combating the financing of terrorism.
FIU chief Ali Faisal Ba’Alawi said the new requirements would help “increase the quality of financial intelligence available to the FIU”. Ba’Alawi added that the requirements will help the FIU track suspicious transfers of funds or investments.
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