EU votes to remove UAE from ‘high-risk’ money-laundering list
Decision comes after parties agreed to hold free-trade talks.
The EU has voted to remove the UAE from its list of countries that pose a high risk for money laundering and terrorist financing amid a drive in the Emirates to boost its regulatory framework.
The European Parliament decided not to object to the European Commission’s proposal to amend the EU list of high-risk countries, enabling the removal of the UAE.
The Financial Action Task Force, the global body that combats money laundering and terrorism financing, removed the UAE from its “grey list” in February last year after significant progress on reforms. The Emirates was placed on that list in 2022.
UAE Minister of State Ahmed Al Sayegh said the decision is “independent recognition” of the UAE’s commitment to the highest international standards in combating global financial crime.
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“The UAE remains a reliable and strategic partner to the EU, committed to ensuring AML/CFT systems are not only robust, but also future-proof and capable of addressing emerging global threats. As one of the world’s fastest growing economies and as a trusted global financial hub, the UAE will continue working with all our global partners to safeguard the integrity of the global financial system. The outcome reflects the UAE’s sustained and swift action and integrated national response to financial crime risks.
These reforms were recognised by the FATF in February 2024, when it removed the UAE from its grey list — an important development that directly informed the Commission’s decision, endorsed by today’s vote.”
The UAE has made significant progress in combating money laundering and the financing of terrorism over the past few years, passing strict laws and issuing regulations to clamp down on financial crime.
A great day for EU-UAE relations and another major milestone in our deepening cooperation. Together, we continue to build a strategic partnership founded on trust, shared values, and a joint commitment to global security and prosperity.
“Over the long term, the delisting reinforces the UAE’s position as a leading international hub for finance and trade, supports its competitiveness, and strengthens its ability to contribute to and shape the development of global AML/CFT norms.”
The new move will “significantly benefit sectors like banking, FinTech, and trade finance, which rely on swift and seamless cross-border flows”
When countries come off high-risk watchlists, they often see capital inflows of up to 7.6 per cent of their gross domestic product, with foreign direct investment alone increasing by around 3 per cent, according to the International Monetary Fund.
Source: The National