Daijiworld Media Network- Dubai
Dubai, Jul 10 : In a major diplomatic and economic breakthrough, the European Parliament has officially removed the United Arab Emirates (UAE) from its list of high-risk countries for money laundering and terrorist financing. The decision follows more than three years of scrutiny and sweeping reforms by the Gulf nation, marking a significant shift in international trust and positioning the UAE more strongly on the global financial map.
The UAE’s delisting comes after its earlier removal from the Financial Action Task Force’s (FATF) grey list in February 2024. Alongside the UAE, the European Union also delisted Panama, Senegal, Uganda, and others, while newly adding countries such as Lebanon, Algeria, and Venezuela to its high-risk watchlist.
In 2022, the UAE’s growing profile as a financial hub came under pressure after FATF flagged gaps in its anti-money laundering (AML) and counter-terrorist financing (CFT) mechanisms. Following this, the EU placed it on its own high-risk list, leading to heightened due diligence for UAE-linked transactions within Europe.
But instead of damage control, the UAE launched a comprehensive reform campaign, spearheaded by top national leadership. A new national AML/CFT strategy was introduced, specialized courts were set up, and tighter controls were imposed on sectors like real estate, gold, and digital assets — all previously considered vulnerable.
Welcoming the EU’s decision, UAE Minister of State Ahmed bin Ali Al Sayegh stated, “This stands as a clear recognition of our nation’s commitment to international standards in combating financial crime. It reflects our resolve, not just in implementing reforms, but in shaping a future-ready financial system.”
The move comes as a huge relief for international investors and trading partners. The UAE's exclusion from the list eases transaction bottlenecks, cuts down on compliance costs, and re-opens smoother pathways for trade with the EU — particularly important as talks continue on expanding cooperation in renewable energy, fintech, and digital infrastructure.
The initial listing wasn’t due to lack of ambition, but because of regulatory gaps in high-risk sectors:
• Insufficient monitoring in real estate, gold trade, and corporate services.
• Weak enforcement and limited convictions for financial crimes.
• Limited international cooperation, particularly in data sharing.
These areas have since seen drastic reforms, including over Dh339 million in fines, streamlined data-sharing between the Ministry of Economy and Dubai Police, and expanded oversight of virtual assets.
• Lower Regulatory Hurdles: EU banks no longer need to apply strict checks on UAE transactions.
• Investor Boost: Renewed confidence is expected to drive FDI into banking, tech, and real estate sectors.
• Trade Momentum: Delisting clears diplomatic roadblocks in India-UAE-EU trilateral discussions on green energy and critical minerals.
Experts warn that the UAE’s success now places it under a new kind of spotlight. “When your house is in order, it’s often tested the hardest,” said one senior financial analyst. As global financial criminals evolve, so must regulation. The UAE's next challenge is future-proofing its system — staying ahead of threats such as crypto laundering and cross-border terror financing.
From Grey to Green: A Timeline
• March 2022 – FATF adds UAE to the grey list.
• March 2023 – EU follows suit with high-risk listing.
• Feb 2024 – FATF delists UAE.
• June 2025 – EU proposes removal from its list.
• July 2025 – European Parliament approves removal.
As the UAE looks ahead, the message is clear: regulatory resilience is not a one-time fix but an ongoing commitment. In the world of finance, reputation may take years to rebuild — but the UAE’s comeback could now serve as a global case study in determined reform.