EU Removes UAE from "High-Risk" Money-Laundering List

In a landmark development that underscores the United Arab Emirates’ growing credibility in the global financial arena, the European Commission has officially dropped the UAE from its list of “high-risk” jurisdictions for money laundering and terrorist financing. This pivotal decision was part of a broader update published on June 10, affecting several nations simultaneously .

What Changed?

• Countries Delisted: The update saw the UAE, along with Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda, removed from the EU’s high-risk list.
• Countries Added: On the flip side, Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela were newly designated as high-risk by the European Commission.

This reshuffling reflects the EU’s periodic realignment of its financial-crime watchlist, based on evolving risk assessments, legislation, and enforcement actions.

The EU’s Criteria & Process

The European Commission classifies countries as high-risk if they display “strategic deficiencies” in anti‑money‑laundering (AML) and counter‑terrorist financing (CFT) frameworks—a decision often guided by the Financial Action Task Force (FATF). Once the Commission approves updates, they’re put forward for review by the European Parliament and EU member states, typically entering into force within a month unless formally vetoed.

UAE’s Vision & Reforms

This decision comes after sustained and robust reforms by the UAE:

1. FATF “Grey List” Delisting: In February 2024, the UAE was removed from FATF’s grey list—a key reassurance that prompted the EU’s reassessment.
2. Amended AML Legislation:
   • Federal Law No. 20 of 2018, later enhanced by Decree-Law No. 26 of 2021 and Cabinet Decision No. 24 of 2022. A particularly crucial amendment was passed in July 2024 centralizing AML enforcement under a national committee.
   • In September 2024, the UAE rolled out a 2024–27 National Strategy for AML/CFT & proliferation financing, featuring 11 strategic pillars covering compliance, enforcement, transparency, and cross-border cooperation.
3. Central Bank Crackdowns:
   • In May and June 2025, the Central Bank fined an exchange house Dh 200 million, several others Dh 18 million, and six more Dh 12.3 million for compliance failures.
   • Over recent years, multiple money exchange outlets, banks, and gold refineries have faced significant penalties or suspension for AML breaches .
4. Free Zone Advances:
   • The Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) introduced stringent AML/CFT frameworks overseen by their respective regulators—FSRA and DFSA—ensuring global-standard compliance.
5. Enhanced International Cooperation:
   • In 2022, UAE signed an MOU on AML/CFT with the UN Office on Drugs and Crime. It also added mutual legal assistance mechanisms, including an agreement with the US in 2022, and expanded its national corporate registries for better transparency  

• Financial Credibility: Removal from the EU list marks an important global validation of the UAE’s regulatory strength and vigilance. Globally, it sends a message of improved financial integrity.
• Trade & Investment: The timing aligns with negotiations for a bilateral EU–UAE free‑trade agreement—the first between the EU and a Gulf nation. Removal from the high-risk list removes a notable barrier and fosters closer economic cooperation.
• Investor Confidence: Banks and international investors tend to support countries with robust AML systems. As one UAE think‑tank expert told Reuters in early 2024, “Investors … may feel more secure,” which can reduce compliance costs in global banking relationships.
• Diplomatic Weight: This milestone reflects positively on the UAE’s international reputation, bolstering its role as a leader in global finance, trade, and compliance.

What the EU Says

Maria Luis Albuquerque, EU Commissioner for Financial Services, reaffirmed that the update reflects strong alignment with FATF norms and a rigorous technical review involving onsite visits and dialogues.

Who’s Still on the List?

The report also adds Monaco—Europe’s second-smallest state and a major financial hub—to the EU’s high‑risk list, alongside Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Namibia, Nepal, and Venezuela . Monaco, long regarded as a haven for the wealthy, faces growing scrutiny over its financial structuring.

Regional & Global Perspective

• FATF & EU Coordination: The EU closely consults FATF data and country assessments. Notably, the UAE’s progress on FATF’s grey list expedited its EU delisting.
• Shifting Enforcement: As financial regulators tighten cross-border monitoring, compliance demands are increasingly global. Unified efforts against AML/CFT vulnerabilities are now central to international finance.
• Case Comparisons: Countries like the Philippines, also recently delisted by FATF, demonstrate how sustained regulatory action can yield international results. Conversely, newly designated countries face intensified oversight.

What’s Next?

1. Final EU Approval: The revised list will go to the European Parliament and Council for confirmation. Unless vetoed within one month, it will take effect immediately.
2. Boosting Trade Talks: With delisting, UAE–EU trade negotiations gain momentum, paving the way for a landmark free-trade deal in the Gulf region.
3. Deeper Regulatory Integration: The UAE is positioned to engage more fully with EU financial frameworks, benefitting both its domestic markets and international partners.
4. Ongoing AML Vigilance: Continued enhancements—like improving corporate registries, enforcing compliance, and cracking down on cross-border criminal finance—will remain key to maintaining this status.

Summary at a Glance

This article is based on reporting by AFP and Reuters, and analysis from Khaleej Times, Gulf News, The National, and AML Intelligence.  
Sources created/published on June 10–11, 2025.