Undertaking KYC (Know Your Client) procedures for an Agent selling real estate in the UAE involves a series of steps that are designed to identify and verify the client’s identity, assess their risk level, and ensure that the transaction is not linked to illegal activities such as money laundering or terrorism financing. Here are the general steps involved in undertaking KYC for a seller of real estate in the UAE:
1. Obtain the client’s identification documents: Collect a copy of the client’s Emirates ID or passport, and any other relevant documents that are required for identification purposes.
2. Verify the client’s identity: Verify the client’s identity through the use of approved identification methods, such as facial recognition, fingerprint scans, or document verification services.
3. Conduct a risk assessment: Assess the client’s risk level based on factors such as their occupation, income, and the source of funds for the transaction. If the risk level is high, additional due diligence may be required.
4. Check for politically exposed persons (PEPs): Screen the client against local and international PEP lists to ensure that they are not a high-risk individual.
5. Check for sanctions and embargoes: Screen the client against local and international sanctions and embargoes lists to ensure compliance with relevant regulations.
6. Collect beneficial ownership information: Obtain information on the beneficial owner of the real estate asset, if applicable. This may include the names, addresses, and percentage of ownership of all individuals or entities that have an interest in the asset.
7. Conduct source of funds checks: Verify the source of the client’s funds to ensure they are legitimate and not linked to illegal activities such as money laundering or terrorism financing.
8. Document the KYC process: Document all the steps taken during the KYC process, including the information collected, the verification methods used, and the results of any screening checks.
9. Update the client information: Regularly update the client’s information, particularly if there are any changes to their personal or business circumstances.
It is important to note that the specific KYC procedures may vary depending on the nature and complexity of the transaction, as well as the regulations and guidelines that apply in the UAE. Therefore, it is recommended to seek professional advice and assistance to ensure compliance with all applicable regulations and guidelines.