'Investors looking to purchase real estate in the UAE should verify whether the brokerage firms are certified by "goAML".'

It’s possible that real estate buyers come across their dream home that they want to purchase without hesitation. They have the funds ready - but make sure your brokerage firm has a goAML certificate.

Image by:Shutterstock

Dubai: Potential real estate buyers in the UAE should note one more item before making investments - to check whether their brokerage firm has all the "goAML" certificates.

If not, the applications for real estate purchases submitted through this specific brokerage firm may be rejected. goAML is a mandatory requirement that real estate business agents need to obtain and receive the necessary approval. (The goAML platform is related to anti-money laundering measures, and businesses with a goAML certificate are required to report any suspicious transactions they encounter from clients.)

We, as Investment Experts LLC, were unable to register with Aldar for its latest Dubai presentation because we couldn't provide them with the goAML certificate on time... - Muhammad Khan, Investment Experts LLC

“Some of the large brokerage firms already have goAML credentials, but so many new brokerage firms are being established, and some of them may not obtain it,” said the real estate agent.

“The potential buyer is unaware of this and risks losing the deal if the developer rejects their application due to a non-government certified agency. In recent weeks, there have been numerous cases of this kind in Dubai. This has led to disappointment for potential buyers, even if they had all the funds to make the purchase.”

Developers insist

Some of the largest real estate companies in the UAE require all organizations they work with - including, of course, brokers - to fully comply with AML regulations.

“We, as Investment Experts LLC, were unable to register with Aldar for its latest Dubai presentation because we couldn't provide them with the goAML certificate in time,” said Muhammad Khan, the managing director of the company. “This forced us to reassess our compliance standards - but in the process, we missed out on profitable investment opportunities for our clients, who then had to turn to other brokers.”

According to the RERA (Real Estate Regulatory Authority) legislation in Dubai, all brokerage firms must possess the appropriate goAML certificates.

But sometimes there are delays between obtaining a new brokerage license and receiving the goAML certificate.

This is harming some recently established brokerage firms. "Until recently, newly created brokerage firms registered for listings with major developers to earn commissions from sales were given an exception," said a real estate consultant. "Now this is a precedent for large developers."

What should businesses do regarding goAML?

In the UAE, the requirements for combating money laundering are very strict, and it is important for businesses to comply with all regulations. The country implements a modern approach to anti-money laundering regulation. Companies should strive to strengthen their reputation and avoid fines by adhering to these requirements.

Companies must register on the GoAML website.goaml.ae/) and subscribe to the lists of international and local bodies, such as the Executive Office of Control and Non-Proliferation (uaeiec.gov.ae/en-us/un-page.- Alexander Kukuyev, managing partner of Uppercase Legal Advisory

Where is goAML used?

Atik Munshi, a partner at the consulting firm Finexpertiza UAE, says: "The responsibility for monitoring and reporting money laundering activities lies with all registered DNFBPs (designated non-financial businesses or professions) in the UAE, regardless of their size. These businesses are considered 'gateways,' and their role in identifying and reporting suspicious transactions to the Central Bank of the UAE is established by this regulation. Since the anti-money laundering law applies to all operations, other organizations that are not DNFBPs also need to verify their clients and suppliers."

Who falls under the DNFBP category?

• Developers or real estate agents involved in buying or selling properties;
• Dealers of precious metals or gemstones;
• Legal consulting firms;
• Accounting or auditing firms;
• Providers of trust services or companies (CSP) that are not DNFBPs themselves.