Effective 5 August 2025 (20 days after publication in the EU Official Journal), the European Union has finally removed the United Arab Emirates (UAE) from its list of “high-risk countries” for money laundering. 

 This change is occurring more than a year after the Financial Action Task Force (FATF), taking note of the improvements in regulation, supervision, enforcement and international cooperation in anti-money laundering and counter terrorism matters, delisted the UAE from its “grey list” in February 2024. A first attempt by the EU Commission to align with the FATF was derailed by the European Parliament in the spring of 2024, based on what was widely considered political considerations – putting Europe at odds with the main international regulatory institution in this field. A renewed motion by the European Parliament to reject this change was defeated on 9 July.

 Until this change occurred, the high risk status meant that all bank transfers between the UAE and the EU were subject to enhanced scrutiny by EU banks, and also that EU auditors and other professionals subject to AML rules had to apply extended procedures for client onboarding and provision of services. This in turn resulted in quasi-systematic delays and questions about the purpose and the source of funds, as well as frequent rejections of transfers by correspondent and beneficiary banks.

 For the UAE, this is good news which confirms international confidence in the country’s regulatory systems. It is expected to facilitate not only the day-to-day life of EU citizens residing the UAE but also stronger financial and trade relationships with the EU and enhance the UAE’s standing as a secure and transparent financial hub.