The United Arab Emirates (UAE) has frequently been in the spotlight for its role in facilitating corrupt activities and money laundering, highlighted by various investigations such as the Pandora Papers and Dubai Uncovered. The International Consortium of Investigative Journalists (ICIJ) recently exposed Dubai as a major hub for smuggled African gold and illicit funds.
In March 2022, the Financial Action Task Force (FATF) placed the UAE on its grey list due to significant deficiencies in its anti-money laundering measures. Similarly, the European Union (EU) classified the UAE as a high-risk country for money laundering. However, by February 2024, the FATF acknowledged the UAE’s progress in addressing these issues and removed it from the grey list. Following this, the European Commission also suggested delisting the UAE, though the European Parliament blocked this move, citing ongoing concerns.
The FATF’s decision to delist the UAE remains contentious. While the UAE has made notable strides in combating financial crime, questions persist about whether these efforts are sufficient to resolve its deep-rooted money laundering challenges.