Friday, 23 February 2024

#UAE removed from money laundering ‘grey list’

UAE removed from money laundering ‘grey list’

The international body that oversees the fight against money laundering has removed the United Arab Emirates from its “grey list”, two years after it identified weaknesses in the Gulf state’s ability to tackle financial crime. 

The Paris-based Financial Action Task Force said on Friday that the UAE was no longer subject to additional scrutiny by the body, having demonstrated that its ability to police illicit money flows had significantly improved. 

The decision is a victory for the UAE, which has become an increasingly important global trading hub but has faced criticism over lax scrutiny of money flows, with transparency campaigners claiming the country has been used by criminals to hide international corruption. 

“If you are on the grey list you are seen to have crossed the red line,” said Bhavin Shah, a Dubai-based expert in combating financial crime and managing director of Secretariat Advisors. Getting off the list “restores the global business community’s trust in the UAE to have a robust framework to fight financial crimes”. 

Barbados, Gibraltar and Uganda were also removed from the grey list, while Kenya and Namibia were placed on it. 

FATF, which designs international standards to help governments tackle illicit financing for crimes ranging from terrorism to drugs trafficking, said the UAE and others removed from the grey list had taken “substantial steps” to improve their financial crime fighting systems. 

The countries “have demonstrated the necessary political will to sustain and continue these changes”, said FATF president Raja Kumar.

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