How do UAE real estate brokers screen customers who are politically exposed persons (PEPs)?
UAE real estate brokers must have risk management systems in place to determine whether a customer or beneficial owner is a politically exposed person (PEP). PEPs, including foreign PEPs and their family members and close associates, carry higher money laundering risk because of their potential access to state resources.
Where a PEP is identified, the broker must obtain senior management approval before establishing or continuing the relationship, take reasonable measures to establish the source of funds and source of wealth, and apply enhanced ongoing monitoring of the relationship. Screening should be performed at onboarding and refreshed periodically, using reliable PEP and sanctions data sources, so that status changes are caught during the life of the relationship.
Legal Reference (UAE):
· Cabinet Resolution No. 134/2025 (Executive Regulations), Article 16 - sets PEP identification, senior management approval, and source of funds and wealth requirements.
· Cabinet Resolution No. 134/2025 (Executive Regulations), Article 5 - lists enhanced due diligence measures for higher-risk customers.
For more details, consult the full text of the Executive Regulations or seek guidance from your AML compliance officer.