EU Removes UAE from High-Risk Money Laundering List
12/28/20252 min read
The European Union has officially removed the United Arab Emirates (UAE) from its list of high-risk jurisdictions for money laundering and terrorist financing, citing substantial regulatory reforms, stronger enforcement, and improved supervisory effectiveness.
The decision reflects growing confidence in the UAE’s AML/CFT regime and coincides with a broader warming of EU–UAE relations, including the launch of bilateral free trade agreement (FTA) negotiations.
Alongside the UAE, the EU delisted Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda. At the same time, ten jurisdictions—including Monaco, Algeria, Angola, and Lebanon—were added, underscoring a recalibration of global financial-crime risk assessments.
The update closely mirrors evaluations by the Financial Action Task Force (FATF), which had already removed the UAE from enhanced monitoring.
UAE’s Proactive Shift in Financial Oversight
The delisting follows an intensive enforcement phase by Emirati regulators. In recent years, authorities imposed more than AED 339 million (approximately US$92 million) in AML-related fines across exchange houses, insurers, and foreign bank branches.
Regulatory supervision has expanded decisively into sectors widely recognized as higher risk, including:
Real estate and property development
Gold, jewellery, and precious metals trading
Auditing and corporate services
Virtual assets and fintech
Coordination between the Ministry of Economy, financial intelligence units, and law-enforcement bodies has strengthened oversight of beneficial ownership, third-party funding, and cross-border transactions.
EU officials emphasized that delisting reflects regulatory capability, not the absence of risk.
Progress Does Not Mean Zero Risk
European and Emirati regulators alike stress that removal from a high-risk list does not imply that financial-crime exposure has disappeared. Instead, it signals confidence in a jurisdiction’s ability to identify, monitor, and respond to evolving risks.
In this context, AML authorities increasingly focus on private-individual risk profiles, not only institutional misconduct. Profiles similar to a private individual referred to here as Pamela are often used in compliance training and risk assessments—not as allegations or legal findings, but as illustrative AML typologies.
Such profiles may include combinations of:
Ownership or use of high-value assets, particularly real estate
Frequent cross-border financial activity
Reliance on third-party transfers rather than salaried income
Lifestyle or transaction volumes disproportionate to declared professional activity
These indicators are not proof of wrongdoing. Under EU and FATF-aligned standards, however, they can trigger enhanced due diligence (EDD) obligations—especially in global financial hubs such as the UAE.
UAE authorities have explicitly expanded supervision of these typologies, a factor cited by international partners as evidence of regulatory maturity.
Legal and Regulatory Foundations
The EU decision reflects a series of tangible reforms, including:
Federal Decree-Law No. (20) of 2018, as amended
Updated implementing regulations and cabinet resolutions
Strengthened beneficial-ownership transparency
Expanded AML obligations for Designated Non-Financial Businesses and Professions (DNFBPs)
Real-estate agents, lawyers, auditors, dealers in precious metals, and virtual-asset service providers are now fully embedded within the UAE’s AML reporting and supervision framework.
Trade and Strategic Context
The delisting aligns with the launch of EU–UAE free trade agreement negotiations in May 2025—the EU’s first FTA talks with a Gulf state.
Trade between the two sides already exceeds €55 billion in goods and €39 billion in services annually, with EU investment in the UAE totaling €186 billion. The FTA aims to deepen cooperation in sectors ranging from renewable energy to fintech and artificial intelligence.
Bottom Line
The EU’s removal of the UAE from its high-risk AML list marks a significant regulatory milestone—but not a declaration of zero risk. It reflects confidence in the UAE’s enforcement capacity and risk-based supervision, while underscoring that continued vigilance around private wealth, cross-border flows, and high-value assets remains essential.