SULAIMANI (ESTA) — The Middle East business hub the United Arab Emirates has been included on a list of jurisdiction subject to increased monitoring, according to a global financial crime watchdog.
The Financial Action Task Force (FATF) said in a statement on Friday that it had added UAE, the region’s financial capital and a gold trading hub, to its “grey” list.
The Paris-based body said the UAE would work to implement a FATF action plan to strengthen the effectiveness of its anti-money laundering and counter-terrorism financing regime.
FATF said the UAE had made “significant progress” since the 2020 report on issues around terrorism financing, money laundering, confiscating criminal proceeds and engaging in international cooperation, according to Reuters.
“Additionally, the UAE addressed or largely addressed more than half of the key recommended actions from the mutual evaluation report,” it said.
Experts say countries on the “grey” list risk reputational damage, ratings adjustments, trouble obtaining global finance and higher transaction costs, Reuters reported.
In response to the listing, the UAE government said it had a “strong commitment” to working closely with FATF on areas for improvement.
“Robust actions and ongoing measures taken by the UAE government and private sector are in place to secure the stability and integrity of the country’s financial system,” the UAE said in a statement.
The UAE, an oil and gas exporter that touts open-for-business credentials and enables glitzy expatriate lifestyles, has in recent years tightened regulations to overcome an image as a hotspot for illicit money.
The designation is a blow for the country as economic competition accelerates with Gulf neighbor Saudi Arabia, the world’s top oil exporter and biggest Arab economy.
