Real estate continues to be one of the highest-risk sectors for money laundering worldwide. In the UAE, the government has taken significant steps to regulate and monitor real estate transactions through goAML registration and mandatory AML policies for DNFBPs (Designated Non-Financial Businesses and Professions). But compliance goes beyond registration—you must be able to recognize and report suspicious activity.
In this blog, we highlight the key AML red flags specific to real estate and how your team can proactively address them.
1. Common AML Red Flags
In Real Estate Transactions Financial criminals often attempt to launder funds through complex or unusual property deals. Here are some warning signs:
- Unusually large cash payments, especially just below AED 55,000 (the reporting threshold)
- Immediate resale of properties at significantly different values
- Use of shell companies or offshore entities to obscure beneficial ownership
- Involvement of third-party intermediaries with unclear business roles
- Property purchases by individuals from high-risk countries
- Buyers unwilling to provide full identification or source of funds
For a global perspective on these indicators, the FATF red flag report is a valuable resource. It provides detailed insight into money laundering methods in the real estate sector.
2. What to Do If You Spot a Red Flag
When suspicious behavior is detected:
- Conduct Enhanced Due Diligence (EDD) on the client.
- Internally document the case with supporting evidence.
- Submit a Suspicious Transaction Report (STR) or Suspicious Activity Report (SAR) via the goAML portal.
If you haven’t registered yet, see our guide: 🔗 How to Register Your Real Estate Company on goAML in the UAE (Step-by-Step Guide)
3. Real Estate Firms' AML Duties
What UAE Regulations Require You to Do? Under UAE AML regulations, real estate brokers, developers, and agents must:
- Monitor transactions for suspicious patterns
- Maintain internal records and an AML policy
- Appoint a Compliance Officer
Non-compliance can result in regulatory penalties, license suspension, or banking restrictions. Learn more at the Ministry of Economy website.
4. InfoAML’s Role in AML Compliance
Tools to Detect & Report Red Flags. InfoAML is an AML compliance platform built specifically for UAE real estate and DNFBPs. Our system empowers compliance teams to:
- Score risk dynamically for each client and transaction
- Screen PEPs and sanctions lists in real-time (UAE, UN & global sources)
- Generate and store pre-SAR/STR reports with audit trails
- Track red flag indicators with customizable alerts
Visit our: 🔗 Features Page to explore how our tools make compliance easier.
Conclusion: Failing to act on a red flag isn't just a compliance issue—it puts your license, your reputation, and your business at risk. With the right awareness and tools in place, your firm can stay ahead of regulatory expectations and conduct real estate transactions confidently.
→ Ready to strengthen your AML controls? [Schedule a free demo] and discover how InfoAML makes compliance smarter, not harder.