Dubai: The global body combating money laundering and terrorism financing - The Financial Action Task Force (FATF), has officially removed the United Arab Emirates (UAE) from its "grey list" after acknowledging significant progress in reform efforts. This decision comes after a thorough on-the-ground review of the Arab world’s second-largest economy. The UAE was placed on the grey list in 2022, signalling concerns regarding its ability to tackle financial crimes effectively.
Alongside the UAE, three other jurisdictions – Barbados, Gibraltar, and Uganda – are also removed from the grey list, following the conclusion of FATF's three-day plenary meeting in Paris. This move reflects commendable efforts made by these countries to address strategic deficiencies in anti-money laundering and combating the financing of terrorism (AML/CFT) systems, as identified during mutual evaluations.
Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and Chairman of the Higher Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism, welcomed the decision, attributing it to significant and collective efforts.
He said, “These collective endeavours serve to expedite the national strategy and action plan, achieve the directives and aspirations of the UAE’s leadership, aiming to further strengthen the country’s leading status and competitiveness, and advance its position globally as an economic, trading and investment hub”
Abdulla bin Touq, Minister of Economy, highlighted the importance of reinforcing the national system to combat money laundering and terrorism financing, considering it a cornerstone for enhancing the UAE's position on the global stage.
FATF in a statement acknowledged the commitment of the UAE, Barbados, Gibraltar and Uganda to swiftly address the identified strategic deficiencies within agreed time frames.
“The FATF plenary congratulated Barbados, Gibraltar, Uganda and the United Arab Emirates for their significant progress in addressing the strategic AML/CFT [anti-money laundering and combating the financing of terrorism] deficiencies previously identified during their mutual evaluations”, said the FATF statement.
As part of the FATF action plan, the UAE introduced various AML/CFT reforms. These measures include enhanced assistance for money-laundering investigations, the imposition of sanctions for non-compliance at financial institutions, and an increased number of prosecutions targeting money-laundering activities.
The on-site inspection considered the final phase before delisting involved an in-depth assessment of the UAE's /CFT reforms and their implementation. FATF officials evaluated the effectiveness of these reforms and the UAE authorities' commitment to sustaining their enforcement in the future.
During the plenary meeting last October, FATF announced that the UAE has made significant progress according to its action plan and approved an on-site inspection, marking a crucial step towards potential removal from the grey list.
Removal of the UAE from the grey list signifies a milestone in the country's efforts to enhance its financial integrity and transparency.