To pass Dubai bank KYC, document your source of funds and source of wealth with clear paper trails—salary slips, ITR/Form 16, sale deeds, gift deeds, audited business accounts, NRE/NRO statements, LRS/ODI remittance proofs, and SWIFT/MT103 receipts then match every transfer to its purpose code and contract.
Why Dubai banks ask—and what they actually want
Banks in the UAE follow robust AML/CTF standards. They must verify not only who you are but also where your money comes from. Therefore, they look for consistent evidence that:
- your funds arose from legitimate activity, and
- the transfer route complied with RBI/FEMA in India and UAE rules locally.
Because clarity speeds approvals, you should prepare documents that connect earnings → Indian bank → permitted remittance → UAE receipt → Dubai account. Moreover, you should make each hop obvious, preferably on a single-page cover note. Get details about Business Bank Account Opening Service in Dubai.
Source of funds vs source of wealth—learn the difference
- Source of funds (SoF):– the specific money you sent (e.g.,business invoice payment, flat sale proceeds, April salary).
- Source of wealth (-SoW-): your overall financial story (inheritances, investments, business profits, career income ).
Banks usually request both. Consequently, you must show a granular trail for the transfer and a bigger picture for your financial capacity.
Build a clean paper trail: the universal five-link chain
Use this checklist for any scenario:
Origin proof – payslips/ITR, sale deed, gift/inheritance deed, or audited accounts.
Indian account proof – NRE/NRO/resident account bank statements showing credit.
Regulatory proof – LRS/FEMA outward remittance form, purpose code, bank memo.
Transfer proof – SWIFT/MT103 or FIRC/e-advice referencing the same amount and date.
UAE receipt proof – your Dubai account statement showing the incoming credit.
When every link matches amounts, dates, and names, compliance teams approve quickly.
Salary and bonus: the straightforward route (Residents & NRIs)
You can justify salary savings easily if you prepare:
- Last 6–12 months salary slips and matching Indian bank statements.
- Latest Income Tax Return (ITR) and Form 16 or Form 26AS.
- LRS outward remittance receipt with S0023 (or the relevant) purpose code.
- MT103/SWIFT for the exact transfer into Dubai.
Add a one-page note: “Salary savings transferred under LRS for investment/maintaining funds.” Consequently, reviewers tick every box fast. Get details about Company Registration in Dubai.
Business income and dividends: show the engine, not just the exhaust
For proprietors, partners, and shareholders, provide:
- Latest audited financials and tax return of the entity.
- GST returns or major sales invoices with contract copies (if applicable).
- Dividend declaration/resolution and bank credit proof to your account.
- NRO/NRE statement showing onward remittance, plus LRS or ODI evidence if you invested as a company.
Because business stories vary, you should map cash flows visually (one diagram works wonders) and label invoices that funded the transfer.
Property sale proceeds: align deed, tax, and remittance
Banks view real-estate sales as high-value yet verifiable. Therefore, attach:
- Sale deed with buyer details, consideration, and stamp duty proof.
- Bank statement showing the buyer’s credit into your account.
- Capital gains computation, tax paid challan (if applicable), and ITR acknowledgment.
- LRS remittance slip and MT103 to the Dubai account.
If several transfers followed one sale, include a reconciliation table: date, amount, exchange rate, and cumulative total.
Gifts and inheritance: document intent and legality
Gifts and inheritances pass KYC when you provide:
- Gift deed (relationship, amount, mode) or probate/will/succession certificate.
- Donor’s bank statement showing the outgoing transfer and tax position (if needed).
- Your bank’s incoming credit, then LRS and MT103 to the UAE.
Add a line on your SoW note: “Part of family wealth transfer.” Moreover, keep donor PAN and ID copies to close queries faster. Get details about Corporate Tax Consultants in Dubai.
Investments redeemed: show the instrument’s lifecycle
For mutual funds, equities, FDs, or bonds:
- Redemption statements or contract notes with folio/DP IDs.
- Bank credit proof of redemption proceeds.
- Capital gains or interest TDS certificates, plus ITR page.
- LRS documentation and MT103 to Dubai.
Therefore, the officer sees money leave the instrument and arrive in your UAE account with no gaps.
NRE vs NRO: choose the correct pipeline
- NRE (external): Offshore income/foreign earnings; principal and interest are repatriable.
- NRO (ordinary): Indian-source income; repatriation requires CA certificate (Form 15CB) and Form 15CA in many cases.
You should pick the account that matches your income source. Consequently, compliance and FEMA checks complete without friction.
ODI/LRS when investing via an Indian company or personally
If you invest personally, use LRS and keep bank forms with purpose codes. If you invest via an Indian company, follow ODI rules and retain:
- Board resolution approving the overseas investment.
- ODI form filings/acknowledgments and valuation (if required).
- Outward remittance proofs that match ODI records.
Therefore, the bank sees regulatory compliance at source, not just at destination. Looking for a VAT Registration Service in UAE?
Presentation matters: the two-page pack that wins approvals
Create a mini-dossier:
Page 1: Cover note
- Your identity and contact.
- Transfer purpose and amount.
- Bullet list of attached proofs (origin → Indian bank → LRS/ODI → MT103 → UAE receipt).
Page 2: Flow diagram
- Boxes for each step with dates and amounts.
Then append evidence in order. Because reviewers love tidy bundles, you reduce back-and-forth emails dramatically.
Related Articles:
» How to Set Up an Indian Subsidiary Company in Dubai?
» How to Access Funding and Support for Your Dubai Business
» Benefits of Setting Up a Business in Dubai Free Zone for Indians
» How to Open a Corporate Bank Account in Dubai?
» Opening a Business Bank Account in Dubai: Requirements for Indians
Common red flags—and how you fix them
- Mismatched names or spellings: Mirror PAN/passport formats everywhere.
- Round figures with no context: Attach the invoice, deed, or payslip that produced the number.
- Large cash deposits: Avoid cash; route funds by bank transfer.
- Multiple small transfers: Group them under one explanation and reconciliation table.
- Purpose code errors: Ask your remitting bank to correct the code; attach the revised memo.
In addition, speeds onboarding, upfront signals transparency, and addressing red flags .
Quick templates you can reuse
Salary savings statement (sample):
“I transferred AED X equivalent on [date] under LRS, funded by net salary (slips attached) credited to [bank]. ITR/Form 16 enclosed. MT103 attached.”
Property proceeds statement (sample):
“Funds derive from flat sale (deed dated [date]). Buyer paid to [bank] on [date]. Capital gains tax paid. Remittance under LRS on [date]. MT103 enclosed.”
FAQs
What documents do banks ask first?
Passport, address proof, UAE account details, and a source-of-funds pack tied to the transfer.
Is salary enough as proof?
Yes—attach payslips, ITR/Form 16, Indian bank statements, LRS, and MT103.
How do I show business income?
Provide audited accounts, tax returns, key invoices, bank credits, LRS/ODI, and MT103.
How about accepting cash deposits?
Strictly, avoid cash; banks prefer traceable transfers with deeds or invoices .
Can I send from NRE and NRO both?
Yes—match source types and include 15CA/15CB for NRO where required.
What proves a property sale?
Sale deed, buyer’s bank credit, capital-gains proof, LRS, and MT103.
How do I document gifts?
Gift deed, donor’s bank statement, your credit, LRS, and SWIFT advice.
Do I need e-invoices for investments redeemed?
Attach redemption statements/contract notes, bank credit, tax proofs, and LRS/MT103.
Will a cover letter help?
Absolutely—summaries speed reviews and reduce queries.
What if the purpose code is wrong?
Then, request correction from the remitting bank and after that submit the updated memo.