The Financial Action Task Force (FATF), an intergovernmental anti-money laundering group, has removed the United Arab Emirates from its “gray list,” which means that the UAE will no longer be subject to greater monitoring by the FATF.
The watchdog group gray-lists a country when it spots deficiencies in anti–money laundering and terrorist financing controls, but authorities agree to work with the FATF to remedy potential problems. Financial institutions generally consider it riskier to do business with companies based in gray listed-countries.
The UAE, which includes diamond center Dubai, was first flagged for increased scrutiny in March 2022.
When the UAE was put on the list, observers called it the “most significant” step in the FATF’s 30-year history, as the group had never before gray-listed a country and market the size of the UAE.
The removal, announced at the FATF’s annual plenary, follows an on-site visit by FATF officials. In October, the FATF said the UAE had shown the “necessary political commitment” to improve its financial controls and had implemented a number of “key reforms.”
On the social media platform X, an anti-corruption NGO, Transparency International, called the move “hasty” and “premature,” saying it’s too early to assess the impact of any reforms by the UAE.
“Recent media coverage suggests that UAE’s apparent cooperation on Russia-Ukraine sanctions may have earned the country support within the FATF,” Transparency International said in an X post. “Even if the UAE is finally cooperating on sanctions, that’s far from enough to address its dirty money problem.”
At the plenary, the FATF added Namibia, a leading diamond-producing country, to the gray list.
Top: The the Financial Action Task Force plenary (photo courtesy of FATF)
Follow JCK on Instagram: @jckmagazineFollow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine
