EU Removes UAE From Its High-Risk AML List

On 10^th June 2025, the European Union announced that the United Arab Emirates, along with seven other countries, has been removed from its list of high-risk jurisdictions for money laundering and terrorist financing.

This move highlights the EU’s acknowledgment of the substantial improvements the UAE and the other 7 nations have made in enhancing their anti-money laundering (AML) and counter-terrorism financing (CFT) measures.

The following jurisdictions have been removed from the EU’s high-risk list:

1. United Arab Emirates
2. Barbados
3. Gibraltar
4. Jamaica
5. Panama
6. Philippines
7. Senegal
8. Uganda

It should also be noted that on 23^rd February 2024, the UAE was also officially removed from the Financial Action Task Force (FATF) “grey list” of jurisdictions under increased monitoring for deficiencies in anti-money laundering (AML) and counter-terrorism financing (CTF) measures. This decision followed significant reforms implemented by the UAE to strengthen its regulatory framework, improve transparency, and enhance enforcement actions in line with FATF recommendations.

The removal marked a major milestone for the UAE’s global financial standing and reflected its ongoing commitment to international compliance standards.

Historically, the EU relied heavily on the FATF lists when identifying high-risk third countries for AML/CFT purposes.

Before 2020, the EU’s list closely mirrored the FATF list. The European Commission would typically adopt the FATF-listed jurisdictions without an independent assessment.  When the FATF removed a country from its list, the EU would often follow suit, though not always immediately.

In May 2020, the European Commission adopted a new methodology for identifying high-risk third countries. This methodology included:

• Independent EU assessments – the EU retained a grey-listed country until its own criteria, including implementation and market exposure, were met;

• FATF listing as just one input, not the sole determinant;
• Consideration of EU-specific threats and vulnerabilities.

In the UAE’s case, EU authorities scrutinized its legislative, enforcement, and compliance reforms — including judicial cooperation, and AML/CFT strategy 2024

The Way Forward

UAE’s Enhanced Financial Reputation /  Investment Prospects

The EU’s decision to remove the UAE from its high-risk list represents a major positive shift in the UAE’s global financial standing.  It carries extensive positive consequences for international trade, investment and regulatory standards.

It is expected that the UAE will benefit from heightened investor confidence, more efficient compliance procedures, and lower operational costs for businesses operating domestically.

The latest news follows a series of high-profile efforts by the UAE to strengthen its anti-money laundering and counter-terrorism financing (AML/CFT) regime.

In recent months, UAE regulators have intensified enforcement measures, imposing over AED 339 million in penalties on local exchange houses, foreign bank branches and insurance firms.

This robust approach also includes targeted actions against systemic failures in monitoring suspicious transactions and expanded regulatory oversight across high-risk sectors such as real estate, gold and jewelry trading, auditing, and corporate service providers. Additionally, the UAE’s Ministry of Economy has partnered with Dubai Police to enhance surveillance and information sharing on beneficial ownership, underscoring the country’s commitment to safeguarding its financial system from illicit activity.

As mentioned above, the EU’s decision to delist the UAE corresponds with the UAE’s recent removal from the Financial Action Task Force’s grey list in February 2024.

These milestones highlight the UAE’s dedication to reinforcing its AML/CFT frameworks, such as greater transparency in company ownership and stronger collaboration with international law enforcement.

 Impact on EU-UAE Bilateral Relations

The decision is set to streamline trade and financial dealings between the UAE and EU member countries. By removing the UAE from the high-risk list, the requirement for enhanced due diligence and reporting is lifted, lowering transaction costs and encouraging stronger economic connections.  This will facilitate smoother financial transactions between the UAE and the EU member states.

This development comes at a crucial time, as the UAE and the EU work toward finalizing a comprehensive trade agreement within an 18-month timeframe.

Broader Implications for Global AML/CFT Standards

The EU’s removal of the UAE from its high-risk list signifies a wider effort to harmonize regulatory standards with global norms. This action could motivate other countries to strengthen their AML/CFT frameworks to align with international expectations, helping to create a safer and more transparent global financial system.

New Jurisdictions That Have Been Added to the EU High-Risk AML List

While the UAE and the other 7 countries listed above were removed from the high-risk list, the EU has revised its list of high-risk jurisdictions by including 10 jurisdictions that present significant deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) frameworks.

These are:

1. Algeria

2. Angola
3. Côte d’Ivoire (Ivory Coast)
4. Kenya
5. Laos
6. Lebanon
7. Monaco
8. Namibia
9. Nepal
10. Venezuela

These jurisdictions will now face heightened scrutiny regarding their anti-money laundering controls.

EU entities subject to the AML framework must exercise enhanced due diligence in transactions involving the above-mentioned countries. This measure is essential to safeguard the integrity of the EU financial system.

It can be argued that the EU’s decision to add new jurisdictions to the high-risk list underscores the ongoing challenges in global efforts to combat money laundering and terrorist financing.

Conclusion

As the EU continues to monitor and assess the effectiveness of AML/CFT measures worldwide, it remains committed to ensuring the integrity of its financial system and upholding international standards in combating financial crimes.  Although this progress paves the way for greater economic cooperation, it also highlights the ongoing need for continued scrutiny and vigilant oversight to ensure the resilience of global financial systems.

The EU’s removal of the UAE from its high-risk AML list marks a crucial milestone in the UAE’s pursuit of stronger financial integrity.