With reputations on the line, being removed from the list is an achievement that such jurisdictions – and firms operating in them – like to broadcast.

The inter-governmental body setting standards in the fight against money laundering and terrorism finance has removed the United Arab Emirates from its “gray list” of jurisdictions, subject to increased monitoring.

The move by the Financial Action Task Force (FATF) – under Singapore’s presidency – and announced late last week, also included Barbados, Gibraltar, and Uganda. They have also been removed from the FATF’s list.

The FATF said it congratulated Barbados, Gibraltar, Uganda, and the UAE for their “significant progress” in addressing the strategic AML/CFT deficiencies previously identified. “These jurisdictions had committed to implement an action plan to resolve swiftly the identified strategic deficiencies within agreed timeframes. These countries will no longer be subject to the FATF’s increased monitoring process.”

The actions also suggest that the UAE’s measures to tighten screws on Russian companies – the jurisdiction does not yet operate sanctions against Moscow – have played a part in swaying the FATF’s mind on the Middle East financial hub. In November 2023, Russian firms based in the UAE were reported to be coming under greater scrutiny from local banks (Bloomberg, November 23, 2023). 

Separately, the FATF began a public consultation on potential changes to its recommendation on wire transfer information, and adopted new guidance on trusts. The FATF also noted its concern over Russia’s “growing financial connectivity with North Korea and Iran.”

“At a moment when the United States is advancing historic initiatives to safeguard the US financial system, we commend the FATF’s vital work to strengthen global standards relating to combating illicit finance,” Secretary of the US Treasury, Janet Yellen, said in a statement on Friday.

The presence of a jurisdiction on the FATF gray list is a shadow over such places, even though in the case of the UAE, for example, it has thrived in recent years. With reputations on the line, being removed from the list is an achievement that such jurisdictions – and firms operating in them – like to broadcast.

The following countries have had their progress reviewed by the FATF since October 2023: Barbados, Bulgaria, Burkina Faso, Croatia, Democratic Republic of Congo, Gibraltar, Jamaica, Mali, Mozambique, Nigeria, the Philippines, Senegal, South Africa, South Sudan, Tanzania, Türkiye, the UAE, and Uganda. Cameroon, Haiti, Syria, Vietnam, and Yemen chose to defer reporting. The FATF now also identifies Kenya and Namibia.