European Union removes UAE from money laundering high-risk list

In a significant development for its global financial standing, the European Union on Tuesday announced the removal of the United Arab Emirates from its money-laundering "high-risk" list. This decision reflects growing international recognition of the UAE's intensified efforts to combat financial crimes.

Alongside the UAE, seven other jurisdictions were also removed from the list: Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda.

A Shifting Landscape: New Additions and Deletions

While the UAE and others exited the high-risk list, the European Commission also revealed new additions. Monaco was included alongside nine other jurisdictions now subject to increased scrutiny of their money laundering controls. These newly added countries are Algeria, Angola, Ivory Coast, Kenya, Laos, Lebanon, Namibia, Nepal, and Venezuela.The EU's move aligns closely with the assessments of the Financial Action Task Force (FATF), a Paris-based international watchdog. The FATF reviews the efforts of over 200 countries and jurisdictions in preventing money laundering and terrorism financing, compiling a "grey list" for nations under increased monitoring. Notably, the FATF had already removed the Philippines from its list of countries facing increased monitoring in February, while adding Laos and Nepal.

Monaco has been on the FATF list since mid-2024, a list which also includes EU member states Bulgaria and Croatia.

Commitment to International Standards and Future Steps

Maria Luis Albuquerque, the EU's commissioner for financial services, underscored the importance of this update. She stated, "The commission has now presented an update to the EU list which reiterates our strong commitment to aligning with international standards, particularly those set by the FATF."The updated EU list is not yet final. It will now undergo scrutiny by the European Parliament and member states. If there are no objections, the revised list will officially enter into force within one month, as confirmed by the Commission.Monaco's government, upon taking note of this expected update, issued a statement acknowledging their anticipated placement on the EU list, unless the European Parliament or the Council of the EU decides otherwise.

The principality also stressed its firm commitment to take all necessary steps to be removed from the FATF's grey list "in the short term," indicating proactive measures to address international concerns.Also read: UAE Launches Major Money Laundering Crackdown, Collecting Dh339 Million in Fines

UAE's Proactive Stance: A Glimpse at Recent Efforts

The EU's decision to remove the UAE from its high-risk list comes amidst significant and widely publicized efforts by the Emirates to strengthen its anti-money laundering and counter-terrorism financing framework. In recent months, UAE regulators have launched an intense crackdown, levying over Dh339 million in fines against local exchange houses, foreign bank branches, and insurance companies. This aggressive stance includes imposing hefty penalties, pursuing systemic weaknesses in monitoring suspicious transactions, and expanding regulatory oversight to high-risk sectors such as real estate, gold and jewellery trading, auditing, and corporate service providers.

Furthermore, the UAE Ministry of Economy has teamed up with Dubai Police to enhance surveillance and data sharing on beneficiary ownership details, reinforcing the nation's commitment to protecting its financial system from abuse.