Two of Dubai's leading real estate developers have informed clients and partners of their decision to limit cash payments to AED 55,000, with the rest to be processed through banking channels.
Other private real estate developers expect the same limits on cash-based property transactions to be approved by law soon.
The new approach ensures transparency of transactions and aligns with policies on combating money laundering and terrorist financing (AML). The UAE authorities require all major transactions to be processesd through the banking system.
On June 24, 2022, the UAE Ministry of Economy issued Circular No. 05/2022 that addressed real estate brokers and agents.
The circular mandates to file a transaction report when a payment is made by one of the following methods:
In accordance with the Article 14 of Federal Decree-law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Illegal Organizations (as amended on 26.09.2021), any violation of the AML poli...