The Abu Dhabi Real Estate Centre (ADREC) has issued a circular making Know Your Customer (KYC) compliance a formal prerequisite for all sale and purchase transactions in Abu Dhabi’s real estate market. The requirement applies to all developers without exception and came into effect on 18 May 2026, with a grace period running until 31 May 2026.
What the Circular Requires
Under the new framework, developers must complete the KYC process for every investor before registering a Sale and Purchase Agreement (SPA) with ADREC. Failure to do so will result in ADREC declining to register the transaction and, where applicable, withholding the issuance of a No Objection Certificate (NOC).The circular applies to all investors regardless of nationality, domicile, or transaction value — covering both off-plan and secondary market transactions.
Minimum KYC Requirements
ADREC has set out a comprehensive list of 15 minimum KYC requirements that developers must meet. These include:
- Collection and verification of identity documents, including name, date of birth, nationality, address and contact details
- Screening against applicable local and international sanctions lists
- Adverse media checks
- Standardized risk scoring following assessment results
- Enhanced Due Diligence (EDD) for high-risk investors
- Politically Exposed Person (PEP) screening, including family members and close associates
- Identification and verification of Ultimate Beneficial Owners (UBOs) for corporate investors
- Deep verification of sources of funds and method of payment
- Ongoing monitoring and periodic re-certification
- Network mapping to identify social relationships and hidden risks
Documentation for ADREC Registration
Proof of completed KYC must be submitted as part of the documentation required for registration with ADREC. Developers who cannot conduct the KYC process internally must engage an approved third-party service provider and submit the resulting certificate and compliance report to ADREC.
What This Means for Developers
This circular represents a significant step in Abu Dhabi’s effort to strengthen the integrity of its real estate market and align international AML and financial crime prevention standards. Developers who have not yet established formal KYC processes will need to act swiftly to avoid transactional disruption.
How We Can Help
Adapting to ADREC’s enhanced KYC requirements requires a structured and practical approach. We support real estate developers in conducting gap assessments against the new regulatory expectations, establishing or strengthening KYC frameworks, and ensuring alignment with broader AML and financial crime compliance standards.| For more information on how to build or assess your KYC and AML compliance framework in line with ADREC’s requirements, please contact BDO’s Financial Crime and Regulator Compliance |
CONTACT US