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UAE’s New Real Estate Rule Regarding Payments Using Virtual Assets And Cash

From now on the UAE has issued a law that the real estate agents, brokers, and law firms have to report financial intelligence if the payment is done through virtual currency.

UAE’s New Real Estate Rule Regarding Payments Using Virtual Assets And Cash

The real estate transactions in the UAE made through virtual assets, the sale of the virtual assets, and the cash amounts above AED 55,000 will now be reported to the authorities as per the new rule issued by the UAE.

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What you will get from the new rule?

The adoption of new reporting requirements not only ensures economic and financial stability but also battles malpractice done in businesses. It is a brilliant step taken by the UAE and becoming the first country to implement such a step that shows the country's growing approach to the global fight against money laundering and terrorist financing.

Not in one go; but the decision was finalized after multiple meetings and discussions took place among the Ministry of Economy (MoE), the Ministry of Justice (MoJ), FIU, and other authorities like the Executive Office for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT).

What is the new real estate rule in UAE? Know everything about it.

All the purchase and sale transactions of the freehold real estate properties will be reported to the UAE Financial Intelligence Unit (FIU) by all the real estate agents, brokers, and law firms.

Three payments methods have been selected

  • Cash payments that are equal to or greater than AED55,000
  • Virtual asset payments
  • Those transactions in which the funds used in the transaction are derived from virtual assets

Here’s what experts say about

According to Abdullah Sultan Bin Awwad Al Nuaimi, the introduction of new reporting requirements shows a collaborative effort between the government and the private sector. He said:

The introduction of reporting rules for certain transactions in the real estate sector is another example of how the UAE is coordinating across the government and with the private sector to strengthen the national framework for anti-money laundering and countering the financing of terrorism.

“The rule applies not just to transactions where virtual assets are used directly but also where the funds used have been derived from a virtual asset. The reports will be used to trace the suspicious movement of funds or investments as part of the fight against money laundering and terrorism financing, said the head of the FIU, Ali Faisal Ba'Alawi.”

The head of the FIU, Ali Faisal Ba’Alawi, said the new requirements will help “improve the quality of financial intelligence available to the FIU.” The requirements will help the FIU trace the suspicious transfer of funds or investments, Ba’Alawi added.

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