To strengthen its AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) framework, the UAE has introduced sector-specific reporting obligations for the real estate industry. One of the most critical requirements for real estate brokers, developers, and agents is filing the Real Estate Activity Report (REAR) via the goAML platform.
The REAR filing obligation aims to detect and prevent financial crimes, such as money laundering through property transactions. Failure to comply can result in severe penalties, fines, or license suspensions. This article explains what REAR is, when it must be filed, and how real estate firms can ensure compliance in 2025 and beyond.
What Is the Real Estate Activity Report (REAR)?
A REAR is a mandatory report that real estate companies must file with the UAE Financial Intelligence Unit (FIU) through the goAML system when specific transactions meet high-risk criteria.
It enables authorities to monitor property deals that may involve illicit funds, high-risk parties, or unusual financial activity.
When Must a REAR Be Filed?
According to Circular No. 5/2022 and the UAE AML law, real estate companies must file a REAR in the following situations:
1. Cash Transactions of AED 55,000 or More
If a buyer pays for a property—either fully or partially—using physical cash of AED 55,000 or above, the brokerage must submit a REAR.
2. Virtual Asset Payments
Any property purchase involving cryptocurrencies or other virtual assets (e.g., Bitcoin or Ethereum) requires mandatory REAR reporting.
3. Funds Converted from Virtual Assets
If the payment source involves funds converted from virtual assets into fiat (AED, USD, etc.), a REAR must be filed—even if the final transaction is through bank transfer.
Key Information Required for REAR Filing
When filing a REAR, real estate companies must collect:
- Buyer and seller identification (Emirates ID or passport).
- Details of legal entities involved (trade license, UBO details, Articles of Association).
- Transaction documents (sale contracts, invoices, receipts).
- Source of funds declaration, especially for cash or virtual asset payments.
All documentation must be retained for a minimum of 5 years as part of compliance record-keeping.
Why REAR Is Important for AML Compliance
The REAR is a proactive reporting mechanism that:
- Alerts authorities about suspicious high-value transactions.
- Reduces the risk of real estate being exploited for money laundering.
- Demonstrates a brokerage’s commitment to regulatory compliance.
- Protects firms from heavy penalties due to non-compliance.
Common Challenges Real Estate Firms Face with REAR
- Difficulty tracking transactions involving multiple payment modes (cash, bank transfers, crypto).
- Lack of internal knowledge about REAR filing requirements.
- Delays in filing reports due to manual processes.
This is where AML technology solutions, such as WinGuardAML, can simplify REAR filing by automating data entry, tracking alerts, and maintaining an audit trail.
How to Simplify REAR Compliance
- Register on goAML – Ensure your firm is fully registered with the UAE FIU portal.
- Implement AML Policies – Draft and enforce internal AML/CFT policies specific to property transactions.
- Automate Reporting – Use AML tools to automatically prepare and upload REAR files.
- Train Staff – Educate brokers and sales teams on AML obligations, red flags, and REAR filing procedures.
Conclusion
The REAR filing requirement is a crucial step in the UAE’s mission to combat financial crime in the real estate sector. By understanding when and how to file a REAR, and by leveraging technology to automate compliance tasks, real estate firms can avoid costly penalties while building trust with regulators and clients.
WinGuardAML supports real estate companies by streamlining REAR submissions, CDD checks, and ongoing monitoring—ensuring you stay compliant with UAE AML/CFT regulations.
