What customer due diligence must a UAE real estate broker perform before a property sale?
Before establishing a business relationship or completing a property transaction, a UAE real estate broker must identify and verify the customer using reliable, independent source documents, and identify any beneficial owner behind a corporate or nominee buyer. The broker must also understand the purpose and intended nature of the transaction and, on a risk basis, establish the source of funds.
Customer due diligence is not a one-off exercise. Brokers must apply ongoing monitoring throughout the relationship, keep the customer information current, and scale the intensity of checks to the assessed risk. Higher-risk situations call for enhanced due diligence, while clearly low-risk cases may permit simplified measures. All CDD records must be retained and made available to the supervisor on request.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 19(1)(b) - requires DNFBPs to implement CDD measures and continuous monitoring, retaining the information obtained.
· Cabinet Resolution No. 134 of 2025 (Executive Regulations) - specifies the scope, timing and content of CDD measures.
For more details, consult the Executive Regulations or seek guidance from your AML compliance officer.