In a recent announcement, the Financial Action Task Force (FATF) has removed the United Arab Emirates (UAE) from its “grey list” of countries facing increased monitoring due to strategic deficiencies in countering money laundering and terrorist financing. Simultaneously, Kenya and Namibia have been added to the list, highlighting areas where these countries need to enhance their anti-money laundering (AML) systems.
The FATF, a global watchdog, evaluates and monitors countries to ensure effective measures are in place to combat money laundering and terrorist financing. Countries on the grey list are deemed to have deficiencies but are actively cooperating with the FATF to rectify the issues.
Raja Kumar, the head of FATF, stated that Kenya and Namibia have been identified with deficiencies in their AML systems, and action plans have been devised to address these shortcomings. A total of 21 nations currently reside on the grey list.
The removal of the UAE from the list is a testament to the significant steps taken by the country to enhance its AML and combatting the financing of terrorism (CFT) safety systems. Other countries, including Barbados, Gibraltar, and Uganda, were also removed from the grey list, reflecting their substantial efforts to address the identified action plan items.
The UAE’s Foreign Minister, Sheikh Abdullah bin Zayed Al Nahyan, expressed appreciation for the FATF decision, stating that it will strengthen the country’s leading status, competitiveness, and global positioning as an economic, trading, and investment hub.
The UAE’s inclusion on the grey list in 2022 was prompted by concerns about opaque financial transactions and an influx of Russian money into the country. Over 200 countries and jurisdictions have committed to implementing the FATF’s recommendations to bolster their AML and CFT frameworks.
Apart from the grey list, the FATF maintains a “black list” of high-risk jurisdictions, urging countries to apply countermeasures against Iran and North Korea to prevent money laundering, terrorism financing, and weapons proliferation. Enhanced due diligence is recommended for dealings involving Myanmar.
Furthermore, the FATF reiterated its condemnation of Russia for its invasion of Ukraine two years ago, emphasizing that proactive measures are being taken to safeguard the global financial system given Moscow’s increasing financial ties to countries subject to FATF countermeasures.
