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On June 10, the European Commission released a statement announcing the delisting of the UAE, among other third countries, from its updated list of ‘high-risk jurisdictions’. This is a significant win for the UAE, which has been improving its AML/CFT initiatives over the past few years since being placed in the FATF grey list in 2022.
The Commission’s list of ‘high-risk jurisdictions’ includes countries with strategic deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) regimes. Countries included in this list are therefore subject to increased financial scrutiny from EU authorities, which raises the possibility of financial exclusion and exposes them to pressure from other countries.
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“The UAE welcomes the commission’s updated list of high-risk countries to strengthen the international fight against financial crime, and is fully committed to deepening its robust and strategic partnership with the European Union,” said a UAE official in a statement. “We continue to work closely with the relevant authorities and each EU member state."
Besides the UAE, the other delisted countries include Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda. Meanwhile, a number of countries were included in the list, such as Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela.
Notably, members of the European Parliament must approve the commission's revised list within a month for it to take effect. After being accepted, the regulation will be published in the EU's Official Journal and go into force 20 days later.
The FATF, the global body that combats money laundering and terrorism financing, added the UAE to its grey list in 2022. Following that, the European Commission also added the UAE to its ‘high-risk jurisdiction’ list in March 2023.
Since then, the UAE has implemented extensive reforms, including launching a national anti-money laundering strategy, passing strict laws, and issuing regulations to combat financial crime in the emirates. In February 2024, these actions led to the UAE’s removal from the FATF grey list.