Is the UAE to be delisted from FATF “grey list” on 19th Feb?

KEY POINTS

1. The United Arab Emirates (UAE) was listed on the Financial Action Task Force (FATF) grey list on March 4th, 2022.
2. It has been reported that the United Arab Emirates (UAE) will soon be taken off the Financial Action Task Force’s (FATF) “grey list” – as early as Mid-February 2024 at the next FATF Plenary

• https://www.fatf-gafi.org/en/calendars/events.html

3. This significant development comes after H.H. Sheikh Abdullah bin Zayed Al Nahyan, the Minister of Foreign Affairs and International Cooperation discussed the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism.
4. During the meeting, they mentioned the UAE’s dedication to enhancing its national system to combat money laundering and terrorist financing.

• https://wam.ae/en/details/1395303217901

Why was the UAE included on the grey list?

1. In April 2020, FATF published UAE’s Mutual Evaluation Report, following an on-site visit in 2019.

• https://www.fatf-gafi.org/content/dam/fatf-gafi/mer/Mutual-Evaluation-Report-United-Arab-Emirates-2020.pdf

2. They identified deficiencies in the UAE’s Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) system.
3. The report highlighted several key areas of concern:

• Limited supervision of certain entities such as real estate agents, precious stones and metals dealers, and other non-financial businesses and professions considered vulnerable to money laundering.
• Inadequate risk assessment and identification methodologies for money laundering and terrorist financing.
• Shortcomings in the UAE’s international cooperation mechanisms for exchanging information and coordinating investigations related to AML/CFT.
• Insufficient targeted financial sanctions implementation against designated individuals and entities.

UAE’s Progress on AML/CFT Compliance

1. Since 2020, UAE has worked to improve overall AML/CFT compliance.
2. As of July 2023, FATF found UAE “compliant” with 15 recommendations, “largely compliant” with 24, and “partially compliant” with 1.
3. UAE has made reforms including a better understanding of ML/TF risks, preventing abuse of legal persons, increasing mutual legal assistance requests, and ensuring effective implementation of financial sanctions.

What’s a “grey list”?

1. FATF considers a jurisdiction to be put on the grey list if they have strategic deficiencies in its anti-money laundering and counter-terrorist financing (AML/CFT) regimes.
2. If the countries considered a warning and are actively working with the FATF to address them.
3. They may face increased scrutiny from financial institutions and international organizations.
4. Countries are removed once deficiencies are addressed.
5. You can access the lists of Grey list countries here.

• https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/Increased-monitoring-october-2023.html

What are the consequences of being on the FATF GREY list?

1. The most severe consequence of greylisting is that a continued non-compliant country may become blacklisted by the FATF, which does come with mandated sanctions and more serious reputational damage.

SOURCE

https://www.thefinancestory.com/uae-to-be-removed-from-fatf-grey-list-in-february-2024

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