The UAE is leaving the "gray" zone

27.10.2023 The UAE has stepped up attempts to get out of the gray list of the Financial Action Task Force on Money Laundering (FATF), where the country was included in 2022. These efforts are appreciated: delegates of at least three FATF member countries have stated that the UAE may be excluded from the list as early as February 2024.

At the next FATF meeting, the details of the visit to the UAE will be determined, which will be one of the last stages before the possible exclusion of the country from the list.

To be excluded from the list, it is necessary to obtain a majority of the votes of the FATF members. According to the report of the International Monetary Fund for 2021, inclusion in the "gray list" historically leads to a "statistically significant reduction in capital inflows," but the Arab Emirates survived this event much better than most jurisdictions.

At its meeting in June, the FATF noted the progress of the UAE in a number of areas, but lowered the country's rating on new technologies, including virtual assets, to "partial compliance" with standards. As a result, the Dubai Virtual Assets Regulatory Authority has stepped up enforcement actions against unregulated companies and reported that the transition to more blockchain transactions instead of cash can help in the fight against money laundering.

Link to source: https://www.bloomberg.com/news/articles/2023-10-23/uae-abu-dhabi-push-to-exit-global-watchdog-fatf-d...