EU Plans to Remove UAE from Money Laundering Risk List
- 13.06.2025
- Posted by: Uwe Hohmann
- Category: Dubai
The European Union (EU) is planning to remove the United Arab Emirates (UAE) from its list of high-risk countries for money laundering. This follows the UAE’s progress in strengthening its financial regulations over the past few years.
What's Behind This Decision
The European Commission’s decision follows its review of the work done by the Financial Action Task Force (FATF). The FATF had already removed the UAE from its “grey list” in February 2024, recognizing the country’s efforts to improve its anti-money laundering framework.
The UAE was initially placed on the FATF grey list in 2022, which meant it needed enhanced monitoring while implementing reforms. The country worked systematically to address the identified gaps.
Why This Matters for Businesses
When a country appears on high-risk lists, banks and financial institutions typically apply stricter checks on transactions. This can result in longer processing times and increased paperwork for businesses handling international payments.
Once the EU formally updates its list, companies in the UAE may find it easier to work with European partners. Financial institutions may reduce the extra scrutiny they currently apply to transactions originating from the UAE.
What Comes Next
The updated list must first receive approval from the European Parliament and the Council within one month, which can be extended for an additional month if necessary. After approval, the regulation gets published in the Official Journal of the EU and becomes effective 20 days later. This entire process typically takes around three weeks once the decision-making is concluded.
The Commission conducted a thorough technical assessment using specific criteria and methodology, incorporating information from FATF evaluations, bilateral discussions, and on-site visits to the countries under review.
For businesses, current compliance requirements remain in place until the changes officially take effect. Companies should continue following existing procedures for international transactions and regulatory reporting.
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