Home / Knowledge Hub / Events

The UAE's Removal from FATF Grey List: A Victory of Public-Private Partnership and Promising Economic Prospects

Lily Eid Compliance Specialist lily.eid@bsabh.com
Lily Eid Compliance Specialist lily.eid@bsabh.com

The United Arab Emirates (UAE) achieved a significant milestone on February 23, 2024, as it was removed from the Financial Action Task Force's (FATF) "Jurisdictions under Increased Monitoring" list, commonly known as the "grey list," where it had been listed since March 4, 2022. This decision highlights the country's commitment to strengthening its global financial reputation.

The FATF, headquartered in Paris, was formed in 1989 by G7 countries to combat money laundering and terrorism financing, later expanding its mandate to include fighting terrorism financing. Being listed on the grey list prompted the UAE to work closely with both public and private sectors, particularly in banking and non-financial businesses, to strengthen regulations and combat financial crimes. This collaborative effort has led to better compliance and significant progress in anti-money laundering (AML) and counter-terrorist financing (CTF) measures.

The UAE has implemented comprehensive improvements to strengthen its AML and CTF mechanisms, including stricter customer due diligence (CDD) procedures, enhanced transaction monitoring systems, and the adoption of risk-based approaches to assess and mitigate potential financial risks. Additionally, the UAE has strengthened collaboration with international stakeholders, improving information-sharing mechanisms and fostering cooperation with other nations in the fight against financial crime.

The removal from the FATF Grey List holds great promise for the UAE's economy. By improving regulatory compliance and risk management, the UAE becomes more attractive to foreign investors and facilitates smoother cross-border trade. This, in turn, boosts economic growth and strengthens the UAE's global credibility.

As a strategic hub for global trade, the UAE is ready to capitalize on its enhanced regulatory status. Leveraging its geographical advantage and robust infrastructure, the UAE aims to solidify its position as a preferred destination for multinational corporations and investors seeking access to markets across the Middle East, Africa and beyond.

Looking ahead, the UAE's next steps involve maintaining compliance with international standards, strengthening regulatory frameworks, and enhancing collaboration between the public and private sectors to sustain economic growth and prosperity in the region.

We are ready to support clients addressing their regulatory obligations. Our tailored solutions offer comprehensive compliance services including business risk assessments, manuals, trainings, etc...

This article was written by Lily Eid and focuses on the United Arab Emirates' removal from the Financial Action Task Force's.

For any inquiries, please contact us at info@bsabh.com or +971 4 5285555.

BSA is a regional Law Firm in the Middle East with offices in the UAE, Oman and Saudi Arabia. As a full-service law firm our practice areas include litigation, arbitration and corporate services, including M&A, banking & finance, Intellectual Property, TMT, Fintech, employment and insurance.

Published on 26 February, 2024.

Related Insights
Got a question or enquiry? Contact us