EU Removes UAE From Money-Laundering Watchlist

The European Union has officially removed the UAE from its high-risk money laundering list, acknowledging the country’s efforts to strengthen its anti-money laundering (AML) and counter-terrorism financing systems.

Join our FREE WhatsApp channel to dive into a world of real-time engagement!

UAE Delisted by the EU

This move comes after the UAE was taken off the Financial Action Task Force’s (FATF) "grey list" in early 2024. That list flagged countries with shortcomings in financial oversight, but the UAE’s removal signaled “significant progress” in tightening controls across sectors like banking, real estate, and precious metals.

The EU’s updated list now reflects that progress. The decision not only eases regulatory pressure on UAE businesses dealing with European partners but also signals a stronger partnership between the Gulf country and the EU.

EU and UAE Trade Relations on the Rise

The timing of the EU’s decision aligns with a recent announcement that the EU and UAE are entering formal negotiations for a free trade agreement. If successful, it would be the first comprehensive trade deal between the EU and a Gulf nation.

The agreement is expected to eliminate trade barriers, boost investment opportunities, and open new markets for both European and Emirati businesses. Key areas of collaboration could include tech, energy, and infrastructure, with major deals in the pipeline, like a $50 billion AI data center agreement with France and a $40 billion investment push in Italy’s energy and defense sectors.

Other Countries Removed and Added

Alongside the UAE, countries like Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda were also removed from the EU’s high-risk list.

However, the EU added 10 new countries, including Lebanon, to the updated list. Others added include Monaco, Algeria, Angola, Ivory Coast, Kenya, Laos, Namibia, Nepal, and Venezuela. These countries will now face closer scrutiny over their efforts to prevent illicit money flows.

The European Commission said it used FATF evaluations, bilateral talks, and technical assessments to update the list, ensuring it reflects the latest global financial risk landscape.

Why This Matters

Being on the EU’s high-risk list can lead to tougher compliance requirements for financial transactions, investment, and trade. For the UAE, getting removed from the list marks a major win, making it easier for businesses to operate internationally and boosting investor confidence.

As the UAE continues to position itself as a global financial hub, this delisting by both the FATF and the EU shows that its reforms are being recognized and rewarded on the world stage.