Strategic Analysis Report on Real Estate Money Laundering Typologies and Patterns

Recently, the UAE Financial Intelligence Unit (FIU) issued a strategic analysis report on Real Estate Money Laundering Typologies and Patterns.

The report discusses the exploitation of the real estate sector in the UAE for money laundering purposes. It also enlists the common risk indicators that the real estate professional and the financial institutions must be careful of while engaging in real estate purchase/sale transactions.

In this analysis report, the FIU has identified some of the common typologies being used for laundering funds through the real estate sector. This includes:

• The use of complex structures involving third parties and family members.
• The misuse of legal structure and corporate bank accounts.
• The involvement of DNFBPs (professionals like lawyers).
• The exploitation of home finance transactions and early settlement.
• Manipulation of the property valuation.

This FIU’s evaluation is based on the following reports filed from July 2020 to June 2023:

• Real Estate Activity Report (REAR) filed by real estate brokers and agents
• Suspicious Transaction Report (STR) and Suspicious Activity Report (SAR) were filed by real estate brokers/agents and other regulated sectors.