Dubai Developers Prepare for AML-Compliant Cash Limit in Property Transactions

UAE, 16 May, 2024 : Private developers in Dubai are bracing for new regulations that would restrict all-cash property sales to a maximum of Dh55,000, with the remainder required to be processed through banking channels. Two major master-developers have already implemented the policy, which could have a significant impact on the market as they collectively account for 30-40% of property sales by value. Sources anticipate that these measures will soon be adopted across the board, reflecting a broader effort to increase transparency in property transactions.

Industry insiders suggest that ongoing all-cash transactions are expected to be completed before the new rules take effect. Cash transactions currently make up approximately 20% of property deals in Dubai, a figure that could decrease significantly with the enforcement of the Dh55,000 limit. Developers and brokers are already required to adhere to stringent anti-money laundering (AML) and know your customer (KYC) protocols, with the new ceiling representing an extension of existing regulations.

According to Sameer Lakhani, Managing Director at Global Capital Partners, thorough risk assessments are essential for verifying the source of funds and ensuring compliance with AML regulations. These assessments include customer-specific checks, transaction-specific details, jurisdictional considerations, and delivery channel verification. Buyers, brokers, and banks must all prioritize due diligence to avoid sanctions and maintain compliance with regulatory standards.

Industry experts emphasize that regulatory authorities in the UAE are vigilant in enforcing AML rules, with sanctions imposed on brokers for failing to report suspicious transactions. Naqqash Ahmed, CEO of Capital Plus, underscores the importance of adherence to best practices, noting the potential consequences for brokers who neglect AML guidelines. As Dubai moves towards greater transparency in property transactions, stakeholders across the industry must remain vigilant and proactive in their compliance efforts.

Source  : www.gulfnews.com