Dubai: Potential property buyers in the UAE need to tick another box before they make the investment – check whether their brokerage firm has all the ‘goAML’ certifications in hand.
If they don’t, property buyers may find their submissions made through that particular brokerage firm will not be accepted.
goAML is a mandatory requirement that property agents’ businesses need to apply for and get the required approval. (The goAML platform relates to anti-money laundering measures, and businesses with the goAML certification are bound by it to report any suspicious activities they encounter from any client.)
We - as Investment Experts llc - were unable to register with Aldar for its recent Dubai launch, as we were unable to provide them with the goAML certification in time...
“Some of the big property brokers already have the goAML credentials, but there are so many new brokerage businesses being formed and some of them may not have got it,” said an estate agent. “The potential buyer is not aware of this and stands to lose out if a developer bins their application because the agency used isn’t goAML-certified.
“There were multiple instances of this happening during some of most high-demand offplan releases in Dubai in recent weeks. And that meant disappointed potential buyers – even though they had all the funds to make the purchase.”
Developers are insisting
Some of the biggest names in the UAE real estate space are requiring those entities they deal – including of course, brokers – to be in full certified compliance of AML rules.
“We - as Investment Experts llc - were unable to register with Aldar for its recent Dubai launch, as we were unable to provide them with the goAML certification in time,” said Muhammad Khan, Managing Director at the firm. “This led us to revise our compliance norms - but in the process we lost out on lucrative investment opportunities for our customers who then had to go to other brokers.”
It is only a matter of time before developers big and small require the same goAML certifications for any deal, industry sources say.
What does RERA rules say?
As per Dubai’s RERA (Real Estate Regulatory Authority) laws, all brokerage houses must possess the requisite goAML credentials.
Companies must aim at strengthening their goodwill and avoiding penalties by following the requirements.
But there are occasional lags between getting a new brokerage license issued and for the goAML certification to come through. This is hurting some of the recently created brokerage firms.
“Until recently, newly formed brokerage houses listing with major developers for new launches to get their sales commissions from them were being provided an exception,” said a property consultant. “This is now being clamped down with major developers.”
The onus of monitoring and reporting of money laundering activities is on all UAE registered DNFBP irrespective of their size.
Businesses should register on the GoAML website (goaml.ae/) and subscribe with the international and local authorities lists, such as the Executive Office for Control and Non-Proliferation (uaeiec.gov.ae/en-us/un-page).
- Alexander Kukuev, Managing Partner, Uppercase Legal Advisory
Where does goAML apply
Atik Munshi is Managing Partner at the consultancy Finexpertiza UAE. He says: “The onus of monitoring and reporting of money laundering activities is on all UAE registered DNFBP (designated non-financial business or professions) irrespective of their size.
“These businesses are considered ‘gateways’ and hence their role in identifying and reporting suspicious transactions to the UAE Central Bank is cemented under this regulation. As the money laundering law applies to all transactions, entities other than DNFBPs too would need to screen their customers and vendor.”
Who qualifies as a DNFBP
- Real estate developers or agents which carry out transactions with a customer involving the buying or selling of real property;
- Dealers in precious metals or precious stones;
- Legal consulting firms;
- Accounting or audit firms; and
- Trust or company service providers (CSP), who are not otherwise a DNFBP.
