FATF indicates including UAE into the 'Grey List' on issues of terror funding

Paris/Dubai – Indications have been given that the United Arab Emirates (UAE) will be included in the FATF’ Grey List’ on the issues of terror funding and financial misconduct. A US website reported that a decision in this matter could be taken in the Financial Action Task Force (FATF) meeting to be held next month. In the last few years, UAE has been a leading economy in the Middle East and has emerged as a financial hub. Against this background, the news of possible action by the FATF becomes a sensation.

Moreover, in its report published in April 2020, FATF had accused that UAE had not made requisite amendments to the laws governing Money Laundering and transactions handling. UAE took some important steps in the times after that. The establishment of ‘Office for Anti-Money Laundering and Counter-Terrorist Financing’ and the establishment of separate courts to handle economic offences were the measures taken. Senior UAE official Hamid Al-Zabi had assured that his country would remain in the framework of the international financial systems and is committed to following all the criteria and regulations.

In the last few years, UAE has emerged as the leading economy in the Middle East. Over the last few years, the country that strengthened its economy based on the rich fuel resources has created its independent place as a financial centre. Many leading multinational financial institutions have their regional headquarters in UAE. UAE has emerged as a top country in the Middle East in advanced technology, space, and even tourism. In 2020, UAE also signed an agreement with Israel to establish diplomatic ties.

Against this background, the indications that FATF is considering the inclusion of UAE in its Grey List comes as a shock. Such an action against the UAE will hit the foreign investments coming into the country hard, and it is being claimed that the country’s GDP could drop by nearly 3%. FATF has included 23 countries in the Grey List, including countries like Jordan and Turkey.