EU to Remove UAE from High-Risk Money Laundering List
The European Union (EU) is set to remove the UAE from its list of high-risk countries for money laundering, recognizing the Emirates’ strengthened financial regulations. The decision follows the UAE’s removal from the Financial Action Task Force (FATF) “grey list” in February 2024 after significant reforms.
EU’s Updated List
The European Commission, the EU’s executive body, revised its high-risk list after assessing FATF’s findings. Alongside the UAE, Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda were also removed. Ten new countries, including Lebanon, Monaco, and Venezuela, were added.
The updated list will take effect after approval from the European Parliament and Council, expected within one to two months.
UAE’s Commitment to Compliance
A UAE official stated: “We welcome the EU’s decision and remain committed to strengthening our partnership in combating financial crime.” The UAE has implemented strict anti-money laundering (AML) and counter-terrorism financing (CFT) measures, including:
- A 2024-27 National Strategy with 11 key goals for AML/CFT.
- Tougher laws, including sanctions for non-compliance and enhanced investigative powers.
- Increased fines on financial institutions violating regulations.
Central Bank Enforcement
The UAE Central Bank has intensified penalties, including:
- Dh12.3 million ($3.3M) in fines on six exchange houses this week.
- A Dh200 million fine on one exchange house last month.
- Dh18.1 million in fines on two foreign bank branches for AML breaches.
