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UAE successfully removed from FATF ‘Grey’ List, boosting international confidence

February 28, 2024

Great news for the United Arab Emirates (UAE)! It’s no longer on the “grey” list – a special list by the Financial Action Task Force (FATF), a big global group working against financial crimes. This is a huge thumbs-up for the UAE, especially its buzzing financial scene in Dubai, showing the world it’s a safe place for money matters.

Why does this matter? Being off this list means the UAE is seen as less risky for things like money laundering or funding bad activities. It’s a signal that investing there is a good idea, which could bring more foreign money into the country.

So, what changed? The UAE worked really hard to clean up its act. In 2022, the FATF was worried about some risky business in banks, and with precious metals, stones, and real estate. But the UAE, led by a top government official (who’s also the president’s brother!), made big changes to fix these issues.

This achievement is a big deal because the UAE has come a long way. From a local trading spot to one of the richest places on the planet, thanks to striking oil back in the late ’50s. Putting a lot of effort into fighting money laundering was key to this win.

Experts like John Kartonchik from the UAE think tank Re/think believe this is great for business. It could mean more foreign investment and easier times for banks and their wealthy clients.

Even before this good news, the UAE was already a hotspot for investors and a go-to place for cryptocurrency companies, especially when the world feels uncertain. Its luxury properties are among the most sought-after globally, and it’s now the top place for trading rough diamonds, beating Belgium!

Jonny Bell from LexisNexis Risk Solutions thinks the UAE will keep up the good work against financial crimes. As Gulf countries try to depend less on oil by attracting foreign investment, the UAE is really setting an example by working on better financial investigations, cooperating more internationally, and making sure its rules for digital money are top-notch.

For an initial consultation on the UAE market, email us at info@well-tax.com.

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