EU removes UAE from ‘high-risk’ money-laundering list

The EU has removed the UAE from its high-risk money-laundering list.

The European Commission has updated its list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) regimes.

The UAE was among eight countries removed from the list, while a further 10, including Lebanon were added to the high-risk list.

UAE EU money-laundering boost

EU entities covered by the AML framework are required to apply enhanced vigilance in transactions involving these countries. This is important to protect the EU financial system.

Jurisdictions which were delisted by the EU were:

• Barbados
• Gibraltar
• Jamaica
• Panama
• Philippines
• Senegal
• Uganda
• UAE

Jurisdictions were added to the list were:

• Algeria
• Angola
• Côte d’Ivoire
• Kenya
• Laos
• Lebanon
• Monaco
• Namibia
• Nepal
• Venezuela

The updated list takes into account the work of the Financial Action Task Force (FATF) and in particular its list of “Jurisdictions under Increased Monitoring”.

As a founding member of FATF, the Commission is closely involved in monitoring the progress of the listed jurisdictions, helping them to fully implement their respective action plans agreed with FAFT. Alignment with FATF is important for upholding the EU´s commitment to promoting and implementing global standards.

The Commission said it had “carefully considered the concerns expressed regarding its previous proposal and conducted a thorough technical assessment, based on specific criteria and a well-defined methodology, incorporating information collected through the FATF, bilateral dialogues and on-site visits to the jurisdictions in question”.

Article 9 of the 4th Anti-money Laundering Directive (4AMLD) mandates the Commission to regularly update the list of high-risk third-country jurisdictions.

Last year the UAE introduced a major new anti-money-laundering strategy formulated around 11 strategic goals to outline the legislative and regulatory reforms it is taking to prevent the impact of illegal activities on society.