The European Commission intends to exclude the United Arab Emirates from the EU’s classification of high-risk third nations concerning money laundering and terrorist financing, as revealed in a document reviewed by Euractiv.
The decision follows the global financial watchdog, the Financial Action Task Force (FATF), removing the UAE from its grey list in February 2024.
This isn’t the first occasion the UAE has sought to be delisted; last year, the Commission suggested a similar action, which was ultimately dismissed by the European Parliament.
In response to prior concerns raised by the Parliament regarding judicial and law enforcement collaboration with the UAE, the Commission acknowledges improvements and pledges to “carefully observe the execution of these measures through ongoing structural dialogue with the UAE.”
The EU designated the UAE on its list in March 2023. It is the Commission’s role to pinpoint countries with notable deficiencies in their anti-money laundering and counter-terrorist financing practices. The current EU roster consists of 22 nations, which include Nigeria, Vietnam, and South Africa, with the latest update occurring in December 2023.
Being included on the EU’s high-risk list imposes stricter financial scrutiny from EU authorities, raises the potential for financial exclusion, and subjects nations to external pressures.
In April, Commission President Ursula von der Leyen had a conversation with His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, during which they agreed to initiate discussions regarding a potential free trade agreement.
As per the document, the updated EU list will also see Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda being removed.
On the other hand, countries like Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela are slated to be included.