EU Clears UAE and Gibraltar from AML ‘Grey’ List, Signaling Boost in Trade and Compliance

In a significant move, the European Union has voted to remove the United Arab Emirates and Gibraltar from its “grey list” of jurisdictions with weak anti-money-laundering (AML) systems. The update, formalised this week and to be published soon in the EU’s Official Journal, follows the Financial Action Task Force delisting both in 2024 .

Why It Matters

  • Reputational relief: Countries on the grey list face increased scrutiny, reputational damage, and higher due diligence costs for financial institutions. Removal eases these burdens, enhancing investor confidence .
  • Trade implications: The vote comes amid renewed EU–UAE trade negotiations. The UAE flagged the grey-list status as a sticking point, and its removal may pave the way for smoother talks .
  • Regulatory alignment: The change reflects improved AML frameworks in both jurisdictions, as confirmed by FATF and endorsed by the EU .

Political Dynamics

  • Parliamentary concerns: Some MEPs—especially those aligned with Spain and left-liberal blocs—raised concerns over UAE’s real-estate opacity and possible sanction evasion. They accepted delisting only after the Commission promised to reassess Russia’s grey-list status by year-end .
  • Additional adjustments: Alongside the UAE and Gibraltar, eight others (Barbados, Jamaica, Panama, the Philippines, Senegal, Uganda) were removed, while a new wave of countries—such as Algeria, Angola, Kenya, Monaco, Venezuela—were added to the grey list .

Looking Ahead

  • Monitoring Russia: The promised review of Russia’s AML status could bring fresh updates by year-end, shifting geopolitical and financial terrain .
  • Market impact: Businesses and banks in the Gulf and Gibraltar will now benefit from simplified compliance, reduced transaction costs, and enhanced market access.
  • EU guardrails: The move underscores Brussels’ shift toward data-driven, FATF-aligned AML policy, even amidst political sensitivities.

Takeaway: With the UAE and Gibraltar cleared from the grey list, the EU signals confidence in their AML reforms and primes the groundwork for stronger economic ties—while keeping a watchful eye on geopolitical AML developments.

Leave a Reply

Your email address will not be published. Required fields are marked *