In a major endorsement of the United Arab Emirates’ (UAE) efforts to strengthen financial transparency, the European Union (EU) on Tuesday, June 10, 2025, officially removed the country from its list of “high-risk” countries for money laundering. The move significantly enhances the UAE’s global standing as a secure and reputable financial hub.
A Milestone in Financial Reform
The EU’s decision follows the UAE’s removal from the Financial Action Task Force (FATF) grey list in 2024, a development that recognized the country’s sweeping reforms in combating money laundering and terrorist financing. Over the past few years, the UAE has adopted comprehensive measures to upgrade its Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) laws. These have included enacting tougher legislation, boosting regulatory enforcement, and imposing meaningful penalties for non-compliance.
Just last month, the UAE’s Central Bank fined an exchange house Dh200 million for serious AML/CFT violations. Additionally, branches of two foreign banks were penalized a combined Dh18 million. On the same day as the EU announcement, the Central Bank revealed further penalties totaling Dh12.3 million against six money exchange houses for breaches of money-laundering laws. These enforcement actions reflect the country’s zero-tolerance approach to financial crime and directly address the question of is UAE a high risk country.
Strategic Timing Amid Trade Negotiations
The EU’s updated list arrives at a strategically significant time, as the UAE and the European Union have formally launched negotiations toward a bilateral free trade agreement. If successful, the agreement would mark the first comprehensive trade deal between the EU and the Gulf region. For more details on trade agreement, refer to our article Brexit: US ready for an ‘attractive’ UK trade deal – WellTax
Economic relations between the UAE and the EU are already strong and well-established. The UAE stands as the EU’s leading export market and top foreign direct investment (FDI) partner in the Gulf region. In the past year alone, EU exports to the UAE increased by 15%, marking a total growth of over 48% since 2019. Cumulatively, EU investments in the UAE have reached a substantial €186 billion (Dh780 billion).
The UAE’s removal from the high-risk list is expected to further energize trade discussions and enhance mutual investment flows, strengthening the foundation for a more integrated and collaborative economic future.
Seeking direction or exploring opportunities?
Contact us by using the form below.
Global List Revisions
In addition to the UAE, the EU also removed Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda from its list of high-risk countries. Meanwhile, nine countries including Algeria, Angola, Ivory Coast, Kenya, Laos, Lebanon, Namibia, Nepal, and Venezuela were newly added.
Conclusion
The EU’s acknowledgment of the UAE’s progress marks a pivotal moment in the nation’s journey toward becoming one of the most credible and transparent financial centers in the world. As global regulatory standards evolve, the question arises: is UAE a high risk country? Given the UAE’s strong commitment to staying ahead of the curve, focusing not only on compliance but also on leading in financial governance, it is clear that the UAE does not fall into the high-risk category.