#UAE ‘Gray List’ Status Unlikely to Significantly Hinder Economy - Bloomberg

UAE ‘Gray List’ Status Unlikely to Significantly Hinder Economy - Bloomberg

The United Arab Emirates’ addition to a global watchdog’s list of countries subject to greater monitoring for shortcomings in tackling illicit finance is “unlikely to be a significant blow” to its economy, according to S&P Global Ratings.

“The placement means the country has committed to swiftly resolve strategic deficiencies in its regimes to prevent money laundering, terrorist financing, and proliferation financing, within agreed timeframes, and is subject to increased FATF monitoring,” according to a report.

The UAE was last week added to the Paris-based Financial Action Task Force’s “gray list,” one of the two classifications used by the intergovernmental body for countries determined to have “strategic deficiencies.” The UAE on its part reiterated its commitment to working with the FATF on seeing the action plan through.

S&P, however, said the additional checks and compliance requirements could “increase the cost of foreign funding and potentially make financial transactions more onerous” in the Gulf nation.