The European Parliament has officially removed the United Arab Emirates from its list of high-risk countries for money laundering and terrorism financing — a move that marks a significant win for the country’s financial reputation and is expected to open doors for smoother international transactions.
For years, UAE-based firms have had to navigate tighter compliance measures and higher costs when dealing with European banks. That’s now set to change, as the delisting will ease financial flows between the UAE and the EU, benefiting key sectors like banking, trade finance, and FinTech.
The decision follows the UAE’s broader campaign to tighten its financial safeguards. Earlier this year, the country was taken off the Financial Action Task Force’s (FATF) grey list. The UAE Central Bank has since cracked down on violators, issuing nearly Dh350 million in fines to non-compliant exchange houses, insurance companies, and banks — a clear signal that the country is serious about transparency and enforcement.
Minister of State Ahmed bin Ali Al Sayegh hailed the European Parliament’s decision as an “independent recognition” of the UAE’s efforts to uphold global financial standards. Meanwhile, UAE Central Bank Governor Khaled Mohamed Balama called it a reflection of the country’s “forward-looking national vision” for a secure and resilient financial ecosystem.
The delisting is also expected to boost investor confidence. Data from the International Monetary Fund shows that countries removed from such high-risk lists often experience capital inflows equivalent to 7.6% of GDP, with foreign direct investment rising by around 3%.
The UAE’s reforms extend beyond banks. Real estate, gold and jewelry trading, auditing, and corporate service providers are now under closer watch, with improved data sharing between agencies like the Ministry of Economy and Dubai Police.