Real Estate Activity Report for the Specific Nature of Transactions

AML/CFT Compliance Services UAE

Attention Real Estate Brokers, Agents & Law firms- have you filed a Real Estate Activity Report for the specific nature of transactions?

You being a Designated Nonfinancial Businesses and Professions (DNFBP) as defined under the Federal Decree-law No. (20) of 2018 & Federal Decree-law No. (20) of 2018, to enhance the supervision, Real Estate Activity Report (REAR) has been introduced effectively from 1st July 2022.

To whom Real Estate Activity Report is applicable?

  • Real Estate Broker & Agent: Circular No. 05/2022 dated 24th June 2022 issued by the Ministry of Economy, directs the real estate brokers licensed in UAE to submit reports in their GoAML portal.
  • Lawyers, notaries, and other independent legal professionals: The legal professionals who are preparing, conducting, or executing financial transactions for their customers in respect of the Purchase and sale of real estate.

When is a Real Estate Activity Report (REAR) to be filled?

The above-mentioned DNFBPs are required to submit Real Estate Activity Report (REAR) if the transactions are in nature of Purchase and sale transactions of Freehold real estate, according to the description and determination of the law of each emirate, 

  • Any single physical cash transaction or several transactions equal or exceed AED 55,000 for the entire, or a portion, of the property value.
  • The method of payment is a virtual asset for a portion or the entire property value.
  • The funds used to carry out the transaction were converted from a virtual asset for a portion or the entire property value

Documents Required for Real Estate Activity Report (REAR) filling.

Identification documents of the buyer and seller 

Individual

  • Valid Emirates ID or Passport copy

Corporate

  • Trade License
  • Articles of Association
  • Register of Beneficial owners
  • Emirates ID or Passport copy for all Beneficial owners

Transaction documents:

  • Receipts, invoices, contracts, and purchase and sale agreements.

Records Keeping
 
All documents and information related to Real Estate Activity Report (REAR) should be recorded for a minimum period of (5) years.

Are you exempt from other reporting requirements – STR/SAR, etc.?

You are not. It is important to note that submissions of the Real Estate Activity Report (REAR)do not exempt you from your existing obligations of reporting. It is an additional requirement for the transaction pertaining to freehold property.

Real estate, brokers /agents are also required to file the following existing reports via GoAML whenever applicable.

  • Suspicious Transaction Report (STR);
  • Suspicious Activity Report (SAR);
  • Funds Freeze Report (FFR);
  • Partial Name Match Report (PNMR);
  • High-Risk Country Report (HRC); and
  • High-Risk Country Activity Report (HRCA).
For AML/CFT Compliance Requirements

Call for Consultation
Mr. Ragesh Mattummal | Partner
Mob: +971 50 3578031
Email: rag@emiratesca.com

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