The Financial Action Task Force (FATF) recently removed the UAE from its “grey list” following significant reform progress. This global body, which combats money laundering and terrorism financing, made the decision after a comprehensive review. Specifically, the UAE was placed on the increased monitoring list in 2022. Because of distinguished efforts by relevant ministries and federal entities, the Paris-based watchdog now recognises the country’s improved compliance. Consequently, this success advances the position of the UAE as a global economic, trading, and investment hub.
Global Recognition of AML and CFT Reforms
The FATF plenary congratulated the UAE, along with Barbados, Gibraltar, and Uganda, for addressing strategic deficiencies. These jurisdictions committed to action plans to resolve identified weaknesses within agreed timeframes. Therefore, these countries no longer face the increased monitoring process of the FATF. Sheikh Abdullah bin Zayed, Chairman of the Higher Committee Overseeing the National Strategy, welcomed the move. He noted that collective endeavours serve to expedite the national strategy and achieve the aspirations of the leadership.+1
Implementation of Strict Compliance Measures
The UAE worked closely with the FATF to implement compliance measures and tighter monitoring. Specifically, the country instituted reforms to assist with money-laundering investigations. These measures include the imposition of sanctions for non-compliance at financial institutions. Furthermore, the authorities increased the number of prosecutions to combat financial crime. An on-site inspection served as the final step before the formal removal from the grey list. This evaluation confirmed the enforcement of reforms and the commitment to future execution.+1
| Key Reform Area | Action Taken by UAE |
| Asset Confiscation | Seized assets worth more than Dh1.3 billion in mid-2023. |
| Financial Sanctions | Issued fines totalling Dh199 million in the first half of 2023. |
| Institutional Oversight | Established the Executive Office of AML/CFT in February 2021. |
| Inter-agency Coordination | Coordinated with over 80 government organisations and agencies. |
Institutional Framework for Financial Integrity
The Executive Office of Anti-Money Laundering and Counter Terrorism Financing oversees the national strategy. Because it functions as a national policy organisation, it ensures a sustainable and resilient framework. Specifically, the office coordinates with law enforcement agencies to ensure total compliance. Director General Hamid Al Zaabi stated that the UAE remains fully committed to building long-term capabilities. This focus helps the nation detect, investigate, and understand money laundering risks effectively.
Impact on Global Trading and Investment Status
Reinforcing the national system to combat financial crime serves as a cornerstone for enhancing the status of the UAE. Abdulla bin Touq, Minister of Economy, emphasized that these reforms strengthen the country as a global hub for trade. While the FATF added Kenya and Namibia to the monitoring list, the UAE continues to broaden its international co-operation. Because the UAE is the second-largest economy in the Arab world, its removal from the grey list influences capital allocation by international investors. Consequently, the nation maintains its competitive edge in the global market.
Courtesy: thenationalnews.com
