UAE introduces new reporting requirements to counter crypto real estate money laundering

The United Arab Emirates introduced new reporting requirements for real estate transactions involving digital assets in an August 8 statement.

The new rules are aimed at cracking down on money laundering and terrorist financing, the UAE government said.

As Dubai and Abu Dhabi recently attracted a number of cryptocurrency exchanges and businesses to set up shop there, a number of property developers have announced that they will accept cryptocurrencies. Among them was his DAMAC, a luxury real estate developer. started We will accept payments in Bitcoin and Ethereum in April 2022.

Now the UAE government wants to ensure that the region’s anti-money laundering and anti-terrorism financing standards are equipped to cover digital assets.

The new reporting requirements have been introduced by the Ministry of Economy and Ministry of Justice in collaboration with the UAE Financial Intelligence Unit (FIU). The government also consulted with the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Secretariat.

According to regulations, real estate brokers and law firms must report all transactions involving cryptocurrencies to the FIU. The UAE government said this includes all transactions paid in part or in full with funds derived from cash, cryptocurrencies or virtual assets valued at AED 55,000 (approximately $15,000) or more.

All crypto transactions, no matter how small, must be reported, as the government has not mentioned a threshold for reporting real estate virtual asset payments.

All real estate agents, brokers and law firms must also report the identities and other relevant documents of the parties involved in the transaction, the UAE government said. Reporting requirements apply to both individuals and legal entities buying and selling real estate in the area.

UAE Justice Minister Abdullah Sultan bin Awad Al-Nuaimi said in a statement that the new rules would allow the UAE to take swift action to protect the region from “known and emerging risks”. said.

UAE FIU President Ali Faisal Baalawi said:

“These new measures will improve the quality of financial information available to the FIU and will be used to track suspicious movements of funds and investments as part of the fight against money laundering and terrorist financing.”

The UAE government said it has arranged three workshops to ensure all realtors and brokers meet reporting requirements.

According to Economy Minister Abdulla bin Touq Al Marri, the new reporting requirements will leave little to no room for manipulation or illegal activity affecting investments in the economy and property sector.