Anti-money laundering and combatting the financing of Terrorism. (AML/ CFT).
Since August 2020 the central bank of UAE have laid out clear plans to take money laundering. There is a National Action Plan which is covered by Federal Decree Law no. (20) of 2018 on Anti-Money Launderings and combatting of illegal organizations.
How Does AML/ CFT affect Real Estate Agents?
- There has to be a clear paper trail.
- If money is sent to the brokerage for the purpose of renting or buying a property then the person who sends the money must be the tenant or buyer. This is a clear paper trail.
- If the money is sent from a third party on behalf of a tenant or buyer then the brokerage cannot accept these funds unless the third party is the POA clearly states that they can send or receive on behalf of the buyer/ tenant. A letter stating this fact is NOT enough- it must be a LEGAL POA. Also, if the money is sent from a business account on behalf of the tenant or buyer then there must be a clear direct link between buyer/ tenant and the company.
For example, The Buyer is a shareholder of the company; the money has been sent from and can show a share certificate and trade license. Without this paperwork the brokerage cannot accept these funds and must be returned to sender.
Landlords must receive the funds in their account:
If the brokerage has received funds from a tenant to be transferred to the Landlord, then this money must go to the legal owner of the property. This is a clear paper trail.
The Brokerage cannot send funds to a third party.
AML is taken very seriously in the UAE and Edwards & Towers follow the central bank guidelines to ensure all parties in a transaction are protected.
For further clarity the reader can visit www.centralbank.ae for more information.
