CONTRACTS DEPARTMENT & AML TRAINING

Conducted by Dalia Mazin- Head of Contracts & Compliance

CONTRACTS DEPARTMENT TEAM MEMBERS

Head of Contracts
& Compliance
Transfer
in
Progress
Sales Progression
Officer x7

Contract
in
Progress Contract Document
Executive x4 Controller x2
ANTI-MONEY LAUNDERING &
COUNTERING FINANCE OF TERRORISM
 ANTI-MONEY LAUNDERING & COUNTERING FINANCE OF TERRORISM

• The UAE has issued the Federal Decree-law No. 20 of 2018 to identify and prevent
attempts on Money Laundering, Financing of Terrorism and Illegal Organizations.
• Under the Decretal Laws, Designated Non-Financial Businesses and Professions
(DNFBP) are required to develop internal policies, procedures and controls that
enable them to manage ML-FT risks appointment of Compliance Officer.
• Responsibilities of the Compliance Officer and the Employees to adhere to Anti
Money Laundry and Combating Finance of Terrorism:
• KYC forms issuance and submission of the documents.
• Sanction Screening (IDanalyzer & PEPChecker).
• Customer Risk Assessment & Enhanced Due Diligence.
• Internal suspicious transaction reporting.
• Transaction Monitoring & Transaction Risk Assessment.
• Review the completion and accuracy of the KYC forms.
STAGES OF MONEY LAUNDRY
There are 3 different stages of money laundering:-

• Placement – The first step in money laundering

is to introduce dirty money into clean financial
systems through a series of numerous
transactions that are small enough to avoid
the search.
• Layering – In this phase the funds are
channelled through the sale and purchase of
investment instruments in order to hide the
source of funds.
• Integration – Having processed the funds
through the first two stages, the funds re-enter
the economy and are used to conduct
legitimate transactions (buying property).
 ANTI-MONEY LAUNDERING & COUNTERING FINANCE OF TERRORISM

When a Corporate Relationship has been established, following process needs to be followed

The Contracts Department/ MLRO team shall ensure the KYC form has duly filled
Know Your Customer by the customer. Based on the gathered information, categorize the customer into
various risk categories;

High Risk Medium Risk Low Risk

Categorization of Risk

Enhance Due Simplified Customer Simplified Customer

Due Diligence Diligence at Due Diligence Due Diligence
transaction level

Due Diligence, Incase of Suspicious Enhance Due Enhance Due Enhance Due
Transaction Diligence Diligence Diligence
 KYC Form

v KYC form involves making reasonable

efforts to determine and define the
true identity of the customer and
beneficial ownership, source of funds,
the nature of customer’s business and
more.
v KYC process is mandatory and
required every time when the
customer enters into business relation
with the company.

v Compliance Officer will then conduct

the Customer Risk Assessment.
 Deal Closure Form

v Deal Closure Form is used at the

transfer date, when the payment is
made by both parties to the Broker.

v Seller/Buyer will sign and confirm their

payment at the deal closure form.

v Compliance Officer will then conduct

the Transaction Risk Assessment
before the closing of the deal.
 ANTI-MONEY LAUNDERING & COUNTERING FINANCE OF TERRORISM

v Customer Due Diligence is the process of

identification and verification of customer’s identity
before establishing a business relationship and during
the business relationship on an on-going basis.

Ø Verify the identity of the Individual or entity.

Ø Verify the person who is authorized to act on behalf of
the entity.
Ø Verify Nature of business activities and ownership and
controlling structure.
Ø Verify Intended purpose of the business relationship.
ANTI-MONEY LAUNDERING & COUNTERING FINANCE OF TERRORISM

v Risk Assessment

Ø The Customer’s risk assessment shall be completed prior to establishing a business

relationship with a Customer by the Contracts Department (before drafting the Sales
and Purchase Contract or Lease Contract). Therefore, the Risk assessments (Customer+
Transaction) shall be completed every time before Customer establishes business
relationship – regardless if the Customer is new or repeated client.

v Types of Risk:
SALES FRAMEWORK
(OFFPLAN & SECONDARY)
 PRIMARY SALE:

BUYER (If individual) BUYER (If a company)

Signed booking form Signed booking form

Proof of initial payment to the Developer Proof of initial payment to the Developer

Trade License for LLC Company/ Certificate of Incorporation

Passport
for Free Zone
Emirates ID Authorized signatory’s passport, visa and Emirates ID

Visa (if not, then copy of entry stamp) Attested Power of Attorney for LLC/ Shareholder Resolution for
Free Zone

Attested Power of Attorney and the authorized Memorandum of Association for LLC/ Free Zone
signatory’s passport, visa and Emirates ID (if (Arabic/English)
applicable)
Certificate of Good Standing for Free Zone

Valid Certificate of Incorporation

for Free Zone
 SECONDARY SALE:

DETAILS TO BE PROVIDED:

ü Type of sale, (if the Buyer will pay in cash or through

finance; if the Owner/Seller has any outstanding mortgage
against the property).
ü Seller’s SPA & SOA with Developer (if any).
ü Duration of contract
ü Percentage of commission, if sharing with other agency=
form I.
ü Are both parties placing a deposit cheque or through a
Third party? Undertaking Letter.
ü Is the property vacant or rented, furnished?
ü Are there Minors? Inheritors? POA holder? on behalf of
Seller/Buyer.
ü Buyer and Seller’s active mobile no. and e-mail address
(for the preparation of electronic contracts in Dubai Rest).
Electronic Contracts in DLD
Paper Form A vs E-Form A

• Owner can list only 3

form A to different
Brokers and 1 only
exclusive Form A.

• Mandatory for
marketing the property
for sale.
Paper Form F vs E-Form F

• Blocks the property in DLD

system.

• Brokerage Agreements are

registered in DLD records.

• It avoids the misunderstanding

and misinterpretation of
articles and also guarantees
the rights of all the
stakeholders involved.
SECONDARY SALE:

BUYER SELLER

Passport Title Deed/ Oqood

Emirates ID Passport
Visa (If not, then entry stamp of Visa) Emirates ID
Visa (If not, then entry stamp of Visa)
Attested Power of Attorney and the
authorized signatory’s passport, visa Attested Power of Attorney and the
and Emirates ID (if applicable) authorized signatory’s passport, visa
and Emirates ID (if applicable)
Signed and completely filled in KYC
Signed and completely filled in KYC
form
form
 SALES FRAMEWORK

IF SELLER OR BUYER IS A COMPANY

Trade License for LLC Company/ Certificate of

Incorporation for Free Zone

Authorized signatory’s passport, visa and Emirates ID

Attested Power of Attorney for LLC/ Shareholder

Resolution for Free Zone

Memorandum of Association for LLC/ Free Zone

(Arabic/English)
Certificate of Good Standing for Free Zone

Incumbency Certificate for Free Zone

Shareholder’s Passport, Visa, & Emirates ID (if

applicable)

NOC from Free zone Authority (for Buyer only)

DUBAI REST – TITLE DEED VALIDATION
Ø Install DUBAI REST
Ø Compatible with Android and iOS

Broker A
Fill in the:
• Certificate Number
• Certificate Year
• Property Type

Select “Title Deed

Verification”
 The status will show:
• Valid
• Blocked
• Restrained
• an error message that
Certificate is invalid
TYPES OF SECONDARY MARKET SALE
 CASH SELLER TO CASH BUYER

1 2 3 4
Sign Sales & Purchase Seller applies for Seller receives Property transferred in
Agreement Developer’s NOC Developer NOC Trustee Office

2 days 3 - 10 days 3 days

Seller settles outstanding liabilities Payment breakdowns are provided

(service charges, utilities etc) to both Seller and Buyer
 CASH SELLER TO FINANCE BUYER
3 days 10 - 20 days 2 days

1 2
Property valuation is
3 4
Sign Sales & Purchase Buyer’s Bank issues Seller applies for
conducted by Buyer’s Developer’s NOC
Agreement Final Offer Letter
Bank

3-10 days

7 6 5
Property transferred Transfer appointment
at Trustee Office set between all Seller obtains
parties Developer’s NOC

1-2 days 1 day

Payment breakdowns are provided
to both Seller and Buyer
 FINANCE SELLER TO CASH BUYER
3 - 5 days 3 - 10 days 2 days

1 2
Seller obtains
3
Seller obtains
4
Buyer settles Seller’s
Sign Sales & Purchase liability at property
Agreement Liability Letter from Developer’s NOC
Bank blocking

7-14 days

7 6
Transfer
5
Property transferred Seller obtains
appointment set
at Trustee Office Clearance Letter
between all parties

1-2 days 1 day

 FINANCE SELLER TO FINANCE BUYER
3 days 10 - 20 days 2 days

1 2
Property valuation is
3 4
Seller obtains Liability
Sign Sales & Purchase Buyer’s Bank issues
conducted by Buyer’s Final Offer Letter Letter from Bank
Agreement
Bank

7 - 14 days

8 7 6 5
Property transferred Seller obtains Seller obtains Buyer’s Bank settles
at Trustee Office Clearance Certificate Developer’s NOC Seller’s Liability

1-3 days 1-2 days 3 - 10 days

Payment breakdowns are provided
to both Seller and Buyer
CLOSING
COSTS
IN
W

SELLING A
PROPERTY
 PAYMENT
DESCRIPTION AMOUNT (AED) BENEFICIARY
METHOD

2,625 if Cash (Selling price more than

AED 1 Million)
1,313 if Cash (Selling price less than AED
Cash/personal
1 Million) FAM Real Estate
Sales Progression Fee cheque/manager
4,200 if Finance(Selling price more than Broker
cheque
AED 1 Million)
2,100 if Finance(Selling price less than
AED 1 Million)

Mortgage Discharge Fee 1,290 if Commercial Bank Dubai Land Cash/ card
(if finance Seller) 1,560 if Islamic Bank Department payment
1,010 + 550 (if apartment or villa); Dubai Land Cash/ card
Lease to Own Discharge
410 (if land) Department payment

Property Blocking Fee Cash/ card

Dubai Land
(applicable for Finance 1,545 payment
Department
Seller to Cash Buyer)
 DESCRIPTION AMOUNT (AED) BENEFICIARY PAYMENT METHOD
4% of the selling price + knowledge and
innovation fees of 580 if apartment, office, Dubai Land Manager’s cheque/
Transfer Fees
or villa; 430 if land; 40 if off-plan or has post- Department card payment
handover payment plan
4,200 (if ready property and selling price is
more than 500,000);
2,100 (if selling price is less than 500,000)
Registration Trustee
5,250 (if off-plan and selling price is more Trustee Offices Cash
Fee (VAT inclusive)
than 500,000)
3,675 (if off-plan and selling price is less than
500,000)
Mortgage Registration .25% of the approved loan + 290 admin fee; Dubai Land Manager’s cheque/
Fee 20 if delayed sell lease to own registration Department card payment/ cash
FAM Real Estate Manager’s cheque/
Agency Fee 2% of the selling price + VAT
Broker Cash/ card payment

NOC Fee From 500-5,000 Developer Cash/ personal cheque

Tenancy Guide Updates
 Landlord’s rights to evict the Landlord’s rights to increase
Tenant before and upon the end of rent on the Tenant before the end
Tenancy Contract -12 months of Tenancy Contract -90 days’
notice notice
GRANT & INHERITANCE TRANSFER
 This service allows customers to
WHAT IS GRANT/ register granted property in full or
partial by assigning a property to
GIFTING an individual or a group of
individuals (first-degree relatives:
REGISTRATION? mother, father, spouse, or children)
or companies, given that the
property must not be restricted or
granted.
 WHAT ARE THE LLC COMPANY
Title deed
REQUIRED DOCUMENTS?
No Objection Certificate (NOC) from the Developer
INDIVIDUAL Trade License
Title deed Evaluation certificate from DLD
No Objection Certificate (NOC) from the Developer Birth certificate (for gifting to children)
• attested in Ministry of Foreign Affairs Home Country,
Evaluation certificate from DLD UAE Embassy Home Country and Ministry of Foreign
Affairs in Dubai; Arabic legal translation
Birth certificate (for gifting to children)
• attested in Ministry of Foreign Affairs Home Country, Marriage certificate (for gifting to wife or husband)
UAE Embassy Home Country and Ministry of Foreign • attested in Ministry of Foreign Affairs Home Country,
Affairs in Dubai; Arabic legal translation UAE Embassy Home Country and Ministry of Foreign
Affairs in Dubai; Arabic legal translation
Marriage certificate (for gifting to wife or husband)
• attested in Ministry of Foreign Affairs Home Country, Memorandum of Association (MOA) with Arabic
UAE Embassy Home Country and Ministry of Foreign translation
Affairs in Dubai; Arabic legal translation Shareholder’s passport, visa, Emirates ID
Original passport, visa, Emirates ID Power of Attorney/ Board of Resolution
Succession certificate (in case of owner’s death & Succession certificate (in case of owner’s death &
inheritance transfer) inheritance transfer)
 WHAT ARE THE REQUIRED DOCUMENTS?

JAFZA/ OFFSHORE
Title deed Evaluation certificate from DLD

No Objection Certificate (NOC) from the Developer Letter from Dubai Court as proof of relation

No Objection Certificate (NOC) from JAFZA Certificate of Incorporation

Birth certificate (for gifting to children) Certificate of Incumbency

• attested in Ministry of Foreign Affairs Home Country,
UAE Embassy Home Country and Ministry of Foreign Certificate of Good Standing
Affairs in Dubai; Arabic legal translation
Memorandum of Association (MOA) with Arabic
Marriage certificate (for gifting to wife or husband) translation
• attested in Ministry of Foreign Affairs Home Country,
UAE Embassy Home Country and Ministry of Foreign Power of Attorney/ Shareholder’s Resolution
Affairs in Dubai; Arabic legal translation
Shareholder’s passport, visa, Emirates ID
 DESCRIPTION AMOUNT (AED)

241.50 if flat & villa;

Valuation fees
189 if plot
0.125% of the property value as
per valuation report (shall not be
Transfer fee to DLD less than AED 2,000)
1% of the property value in case
of inheritance

Title deed, map issuance, 560 if flat & villa;

WHAT ARE THE knowledge & innovation fees 540 if land
ASSOCIATED FEES? 4,200 if the property value is
equal or more than AED
Trustee fee 2,000,000
2,100 if less than
AED 2,000,000
5,250 if individual
Sales progression fee
7,350 if company
Company Registration 2,100 if company
Escrow Services
Escrow Services Guideline:

ü We can offer our Sellers and Buyers with a safe

Escrow service holding documents, cheques, cleared
funds and releasing them as a non-bias third party
through licensed escrow service companies.

ü Fam Escrow fee is 1% of the released funds to third

party.

ü Titanium Financial Ltd fee is : AED 12,500 + 0.2% of

the wired/transferred amount.
ü https://titaniumfinancial.com/realestate
Golden & Investor‘s Visa
Golden Visa & Investor’s Visa Guideline:

ü Valid for 2 years and 10 years.

ü Available to individuals who have purchased a property with minimum investment of AED 750,000 to
obtain (2 years Investor’s Visa) and investment of AED 2,000,000 to obtain (10 years Golden visa).
ü Allows visa holder to open a bank account and car license.
ü Total approximately AED 10,000 (Inc VAT) for typing, VIP Medical, Emirates ID and visa processing fees.
ü Administrative fee to Fam – starting AED 5,250.
ü at

Service Fee:

Basic Plan Silver Plan Golden Plan Premium Plan

Individual Investor’s visa Included Included Included Included
Open bank account Included Included Included
Obtain car license Included Included Included
Dependent Visa Included Included
Unlimited dependents Included
Cost (AED) (Inc. VAT) AED 5250 AED 7350 AED 10,500 AED 15,750
Retirement Visa Guideline:

ü The applicant has to be 55 years of age or older.

ü The applicant must have AED 20,000 monthly income, or AED 1 million in savings, or AED 1 million
worth of property in Dubai, or a combination of savings and property in Dubai valued for at least AED
1 million.
ü Valid 5 years and renewal after meeting the same criteria.
ü Total approximately AED 7,000 (Inc VAT) for typing, VIP Medical, Emirates ID and visa processing fees.
ü Service fee to Fam – starting AED 5,250.
ü at
Company Setup
Company Setup:

Ø We are partnered up with licensed management

consultants in Dubai to help you choose the most
suitable company setup under Department of
Economic Development, Free-zones and Offshore
Authorities -UAE whom guarantee a fair service
fee and make sure that you covered with all
aspects of starting a business in UAE.
Ø The company setup service providers will help you
get your 100% exclusive ownership of your
business and obtain business visa for your partners
too that helps you enjoy maximum freedom and
flexibility to grow and operate your business.
Ø Administrative fee to Fam – starting AED 5,250.
POA Verification:

ü POA validity in Dubai is unlimited.

ü Verify the validity of the POA from Dubai Courts.
ü POA validity outside Dubai & outside countries:
ü Selling= 2 years.
ü Buying= 5 years.
ü Remote POA.
ü Appointing POA holder= Conveyancer.
ü Agent cannot be POA holder.
Costs:

ü at POA Fees
Remote POA – Notary Public/Dubai Courts AED 1575

POA Holder- Sales Progression Officer AED 5250

 We are partnered up with
licensed company in Dubai
with specialized Notary
Public services to support
with the following services
verified in Dubai Courts.

Service fee: AED 2,100 Service fee: AED 2,500

We offer competitive
rates, long-term support
and can advise on how
best to implement your
strategies and adhere to
requirements using UAE
rules and regulations.

Service fee: starting AED 60 per page Service fee: AED 4,500
Claims of Compensation/Agency fees:

ü We are partnered up with licensed law firms in Dubai who give us the best
rates for legally representing our Buyers/Sellers or Landlord/Tenants in their
disputes Dubai Land Department, Rental Dispute Committee and the Dubai
Courts.

ü Should the Buyer OR Seller default the Sales Contract, then the company will
refer to clauses No. 11 & 12 from the Additional Conditions to Contract F to
claim the 20% penalty from the defaulting party with at the jurisdiction of
the Dubai Civil Court that is considered as professional and administrative
fees of the company as per the Contract.

ü The Lawyers professional fees as well as the Court Fee of the Court to
pursue the civil claim against the defaulting party shall be shared between
the assigned Agent in the deal and company as per the Agent’s slab.

ü Any collected amount shall be shared with the Agents of the deal as per
their slab on collection date.