Connect with us

News

UAE Now Requires Agents to Report Real Estate Transactions Where Virtual Currency Is Used as Payment

UAE Now Requires Agents to Report Real Estate Transactions Where Virtual Currency Is Used as PaymentThe United Arab Emirates (UAE) has said it now requires real estate agents, brokers, and law firms to report to the Financial Intelligence Unit real estate transactions in which virtual currency is used as payment. Similarly, real estate purchases or sales where “the funds used in the transaction are derived from a virtual asset” must […]

UAE Now Requires Agents to Report Real Estate Transactions Where Virtual Currency Is Used as Payment

The United Arab Emirates (UAE) has said it now requires real estate agents, brokers, and law firms to report to the Financial Intelligence Unit real estate transactions in which virtual currency is used as payment. Similarly, real estate purchases or sales where “the funds used in the transaction are derived from a virtual asset” must also be reported.

Identification Documents of Parties to the Transaction Must Be Recorded

The United Arab Emirates (UAE) government has said it is introducing new reporting requirements for real estate transactions wherein virtual currency is used as a payment method. With the introduction of these new reporting requirements, the UAE is showcasing its “sustainable and evolving approach to the global fight against money laundering and terrorist financing.”

As per a report published by WAM, the decision to alter reporting requirements followed several meetings and discussions which were held by the UAE’s Ministries of Economy, Justice, and the Financial Intelligence Unit (FIU). The discussions were centered on how real estate agents, brokers, and law firms should file reports of property purchases or sales to the FIU.

As part of the new reporting requirements, real estate agents must report all cash transactions where “single or multiple cash payment(s) [are] equal to or above AED 55,000 [$14,974]” to the FIU. Where digital currency is concerned, agents and brokers are required to report to the FIU when payments include the use of a virtual asset. The same should also be done when “the funds used in the transaction [are] derived from a virtual asset.”

As per the WAM report, the new reporting mechanism now “requires real estate agents, brokers, and law firms to obtain and record the identification documents of the parties to the applicable transaction, among other relevant documents related to the transaction.” The report added that the rules will apply “to both individuals and corporate entities that are parties to the above real estate transactions.”

Reporting Requirements to Ensure Economic and Financial Stability

Meanwhile, the report quotes the UAE’s economy minister, Abdulla bin Touq Al Marri, commending the adoption of the new reporting requirements, which ostensibly not only ensure economic and financial stability, but combat malpractice by businesses. For his part, Justice Minister Abdullah Sultan Bin Awwad Al Nuaimi suggested the introduction of new reporting requirements proved the government and the private sector were working together. He said:

The introduction of reporting rules for certain transactions in the real estate sector is another example of how the UAE is coordinating across the government and with the private sector to strengthen the national framework for anti-money laundering and countering the financing of terrorism.

The head of the FIU, Ali Faisal Ba’Alawi, said the new requirements will help “improve the quality of financial intelligence available to the FIU.” The requirements will help the FIU trace the suspicious transfer of funds or investments, Ba’Alawi added.

What are your thoughts on this story? Let us know what you think in the comments section below.

Source: Regulation Archives – Bitcoin News

Continue Reading
Advertisement

News

California Launches Crackdown on 11 Crypto Firms Accused of Operating Ponzi Schemes

California Launches Crackdown on 11 Crypto Firms Accused of Operating Ponzi SchemesThe California Department of Financial Protection and Innovation (DFPI) has cracked down on 11 cryptocurrency companies that are accused of violating California securities laws. Nine of the firms reportedly solicited funds from investors in order to trade cryptocurrencies on the customer’s behalf. One of the accused companies pitched an alleged metaverse software development scheme, and […]

California Launches Crackdown on 11 Crypto Firms Accused of Operating Ponzi Schemes

The California Department of Financial Protection and Innovation (DFPI) has cracked down on 11 cryptocurrency companies that are accused of violating California securities laws. Nine of the firms reportedly solicited funds from investors in order to trade cryptocurrencies on the customer’s behalf. One of the accused companies pitched an alleged metaverse software development scheme, and another firm claimed to be a “decentralized finance (defi) platform.”

11 Crypto Firms Targeted by California’s Department of Financial Protection and Innovation

California’s financial regulator the DFPI has been targeting crypto asset companies and on Tuesday, the financial watchdog launched a “crackdown” against close to a dozen digital currency-centric entities. The DFPI “issued desist and refrain orders against 11 different entities for violations of California securities laws,” the regulator said on September 27. The state’s regulator further noted that the operations are accused of running a pyramid or Ponzi scheme.

California Launches Crackdown on 11 Crypto Firms Accused of Operating Ponzi Schemes

“The entities are all alleged to have used investor funds to pay purported profits to other investors, in the manner of a Ponzi scheme,” the DFPI’s press release notes. “Furthermore, each of the entities had a referral program that operated in the manner of a pyramid scheme. The entities promised to pay investors commissions if they recruited new investors, and additional commissions if the investors that they recruited, in turn, recruited new investors.”

The DFPI’s crackdown follows the cease and desist order it sent to the crypto lender Nexo on Monday. Nexo is accused of offering and selling “unqualified securities, in the form of Earn Interest Product accounts,” since “at least June 2020,” the regulator’s complaint details. The 11 desist and refrain orders issued on Tuesday detail that the entities allegedly offered “classic examples of high yield investment programs (HYIPs).” The 11 crypto companies named in the desist and refrain orders include:

  • Cryptos OTC Trading Platform Limited d/b/a COTP
  • Elevate Pass LLC
  • Greencorp Investment LLC
  • Metafiyielders Pty Ltd d/b/a Metafi Yielders
  • Pegasus
  • Polinur ME Limited
  • Remabit
  • Sity Trade
  • Sytrex Trade
  • Vexam Limited
  • World Over the Counter Limited d/b/a World OTC

During the announcement on Tuesday, DFPI commissioner Clothilde Hewlett commented on the actions that took place against the crypto firms accused of Ponzi-like operations. “The DFPI will continue to protect California consumers and investors from crypto scams and frauds,” Hewlett remarked. “These actions not only protect consumers, but also ensure California remains the premier global location for responsible crypto asset companies to start and grow,” the commissioner added.

What do you think about the California regulator cracking down on 11 different crypto companies? Let us know what you think about this subject in the comments section below.

Source: Regulation Archives – Bitcoin News

Continue Reading
Advertisement

Top Posts

We need your support.

Enjoying our free service? Please help us by clicking the ads on our website. They are 100% safe. Thank you!