UAE Fines 50 Real Estate Companies for Non-Compliance

As the Real Estate market in the United Arab Emirates (UAE) continues to boom and hit record highs, the importance of robust compliance processes becomes even more vital.

The Ministry of Economy (MOE) and Dubai Land Department (DLD) authorities have now issued AED50,000 fines to over 30 companies, suspended 7 real estate licenses, and imposed AED500K fines on three developers operating in the real estate sectors for violating regulation rules.

Real Estate businesses fall into the Designated Non-Financial Business and Professions (DNFBP) compliance categorisation as Property Purchasing/ sale is deemed high risk for Money Laundering & Funding of Illegal activities, and these businesses must therefore maintain a high level of compliance.

As the UAE clamps down on its anti-money laundering (AML) requirements in the real estate sector, the need for robust compliance processes becomes even more vital. Having essential compliance processes in place will assist real estate businesses in the UAE in meeting their compliance obligations.

Assistant Undersecretary for the Monitoring & Follow-Up Sector at the Ministry of Economy, H.E. Abdullah Sultan Al Fan Al Shamsi, emphasized that imposing sanctions on violating companies and properties supports the country’s efforts in strengthening the compliance of the business sector DNFBPs with AML/CFT requirements and legislation.

How can we assist with compliance requirements?

Sovereign and PRO Partner Group have a responsible approach to risk management. We apply robust compliance policies, AML training, and compliance practices within the Group at the entry-level. Our knowledgeable Compliance Team has developed compliance risk management processes specifically designed for DNFBP's.

Sovereign and PRO Partner Group have created compliance packages for real estate companies. This includes providing AML training and compliance department setup, Know Your Client (KYC) and risk assessment policy documents, AML & KYC training manuals, and screening services for your business.

If you require any support with Compliance Services, KYC and AML, then please do get in touch with us at +971 (0)2 448 5120 for Abu Dhabi or +971 (0)4 456 1761 for Dubai or on email info@propartnergroup.com and we will be delighted to assist you.