Real Estate Developer

Real Estate Developer Responsibility

List of Responsibilities of Real Estate Developer with Respect AML Compliance  

 

This short guidance is intended to provide AML/CFT obligations of Real Estate Agents at a glance and is put out only for informational purposes. The binding legislative and regulatory obligations are provided in the Anti-Money Laundering (AML) Act, 2010 and FBR AML/CFT regulations for DNFBPs, 2020.

 

Why real estate is more vulnerable for money laundering activities?

  • The competency level of staff in the real estate sector is generally lower compared to those in sectors like banking and financial institutions, posing challenges for AML compliance.
  • Cash transactions with dealers and agents are highly sensitive under AML laws and are sometimes unavoidable, increasing the risk of money laundering.
  • Customer interactions with the sales team in real estate involve commissions on each transaction, which can compromise the due diligence process and affect the characterization of transactions, potentially breaching AML regulations.
  • The large size of the real estate market and the relative ease of conducting business through intermediaries or proxies make it attractive to individuals and groups involved in illicit activities, heightening AML concerns.
  • The stability and profitability of the real estate market further influence the susceptibility to money laundering activities, requiring stringent AML measures.
  • The real estate sector is interconnected with the construction and building materials industries. Potential money launderers often use both direct and indirect methods to invest in these businesses to inject illicit funds into real estate. These investments can sometimes create discrepancies between the genuine demand and supply in the real estate market.
Which statue governing the AML Compliance in UAE
What are the responsibilities of a Real Estate company as DNFBP in Pakistan?

·         Registration with Federal Board of Revenue.

·         Business with Registered Dealers only.

·         Appointment of Compliance Officer

·         Conduct customer due diligence and obtain all relevant documents.

·         Identify, assess, and understand the risks for customers, countries or geographic areas, and products, services, transactions or delivery channels. (Risk Assessment)

·         File STR/CTR to Financial Monitoring Unit. The record to be maintained shall be subject to inspection by FBR.

·         Be Aware of AML/CFT requirements all the time. (Stay Informed with authorities)

·         Develop AML/CFT Program for your Organization stating policies and procedures for guidance of employee and implementation. (SOP Develop and Implement by Compliance officer)

·         Document and communicate risk assessment internally and externally as per requirements. (Communication)

·         Maintain sufficient and adequate record. (5 Years) Maintain a list of all such customers where the business transaction was refused or needed to be closed either on account of failure of the customer to provide the relevant documents or the original document for viewing.

·         Develop and implement compliance program.

·         Ensure ongoing training of employees.

·         Arrange independent audit of AML/CFT system.

Who are the Regulators of the Following types of the Business?

 

Who can become the Compliance officer?

A natural person who is employed by a legal person (the company) or is appointed,

What are the qualifications of the Compliance officer?

Compliance officer should have the appropriate competence and experience, and is tasked with undertaking on behalf of the legal person (the company) to provide all relevant data, procedures and obligations that are enforceable for the supervisory authority (Ministry of Economy) to fulfill the requirements of (AML/CFT) legislation.

What are the duties of the Compliance officer?
What are the types of the Information obtained at the time of Due Diligence of a customer/Buyer/Seller?

a.      Nature of his work

b.      Purpose of the Business Relationship

c.       in case of Legal Person ownership structure and control on it.

When are the normal signs of Suspicious transactions of Money Laundering?

 

What is the Procedure to Report the STR?

 

What is goAML in UAE?

goAML is a software application used by the UAE Financial Intelligence Unit (FIU) for collecting data related to suspicious transactions observed by the reporting entities. Any report submission to the UAE FIU must be made through the goAML Portal.

 

What is the definition of Go AML as per the Law?

it is an internationally approved electronic system to collect and analyze financial and non-financial information to confront money laundering and combat the financing of terrorism. It enables the Financial Intelligence Unit (FIU) in the United Arab Emirates with better monitor trends during analyzing reports of suspicious activities and transactions to reduce potential threats at more efficient rate and potency.

Who should register with goAML Portal in UAE?

goAML registration is mandatory for the following business entities, which are subject to AML and obligated to report any suspicious transactions to the FIU: – Financial Institutions- Designated Non-Financial Businesses and Professions (DNFBPs)- Virtual Asset Service Providers (VASPs)

What documents are required for goAML registration?

Authorization letter in favor of the appointment of the AML Compliance Officer

– A copy of the Passport, Resident visa, or Emirates ID of the person filing the registration application

– A copy of the Commercial/Trade License of the entity

What is the Role of lawyers, notaries, and other independent legal professionals and independent accountants in Real Estate Transactions?

They are required to report the transaction STR and CTR.

How to get a DNFBP certificate in Pakistan?

You can registered yourself on FBR Website or Mobile App.

 

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