Sign in
The UAE was officially marked off the Financial Action Task Force (FATF)’s “graylist,” following the FATF plenary in Paris on Friday, according to a statement from the French organization. The removal means less scrutiny and monitoring by the FATF, after the UAE successfully cracked down on anti-money laundering and counter-terrorism financing “deficiencies,” the statement adds.
We had hints this was coming: The FATF’s assessors recently acknowledged significant progress, with several FATF member countries that had initially supported the UAE’s inclusion on the list swinging in favor of its removal, as we noted last week.
The UAE checked off all 15 of the FATF’s recommendations, state news agency Wam cites Director-General of the Executive Office for Anti-Money Laundering and Counter Terrorism Financing (AML / CFT) Hamid Al Zaabi as saying. Last year, the country doubled its financial compliance efforts by updating its anti-money laundering guidelines (pdf) and inaugurating a “sophisticated monitoring and reporting system” involving over 90 national entities. The AML / CTF handed out AED 249 mn in fines in 2023 for breaches of the guidelines.
The UAE has also inked 45 mutual legal assistance treaties (MLATs) to increase financial compliance with other countries, with more expected throughout the year.The UAE also extended some 200 MLAT requests between January and October 2023, Wam adds.
The UAE will work with an FATF regional body to continue to strengthen its anti-money laundering and terrorism financing measures ahead of FATF’s next round of evaluations in 2026, according to the FATF statement.
Watch this space: The UAE will roll out its next AML / CFT national strategy for 2024-2027 in the coming months, Wam added.
WHAT THIS MEANS FOR BUSINESS-
A boon for investment: The removal is expected to have a “positive return on the national economy in the long term,” improving the UAE’s ranking in global competitiveness indicators and facilitating the flow of foreign currencies on the back of reduced bank fees, state news agency Wam cites the Dubai Financial Services Authority as saying. Restored international confidence in the UAE’s financial stability is also expected to boost trade and investment, Wam adds.
Wall street banks in particular will benefit from the move, after dealing with increased compliance costs and having to outsource some functions to other countries like India, Bloomberg reports.
