Monday 28 February 2022

Looming FATF decision on dirty money list poses risks for #UAE | Reuters

Looming FATF decision on dirty money list poses risks for UAE | Reuters

A global financial crime watchdog will decide this week whether the United Arab Emirates has made enough progress to avoid landing on a 'grey' watchlist, a designation which risks reputational damage to the Middle East's business hub.

The Financial Action Task Force (FATF) in 2020 called for "fundamental and major improvements" by the UAE, the region's financial capital and a gold trading hub that has tightened regulations to overcome an image as a hotspot for illicit money.

Countries on the 'grey list' face increased FATF monitoring and risk reputational damage, ratings adjustments, trouble obtaining global finance and higher transaction costs, experts say.

UAE Minister of State Ahmed al-Sayegh told Reuters the risk from a potential greylisting to sectors such as banking, real estate and credit ratings was "generally low".

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