The UAE was removed from the grey list of global watchdog Financial Action Task Force (FATF) on Friday 23/02/2024, a decision that could lead to smoother foreign currency transactions, lower inter-bank fees, and increased trade and investment.
“The UAE’s removal from the FATF’s grey list reflects the country’s commitment to fighting financial crime and sanctions evasion and will boost trust in its financial system,” Mohamed Daoud, Industry Practice Lead at Moody’s Analytics said in an emailed statement.
“Even so, don’t expect the international compliance community to immediately change the way it interacts with the country. Think of it as a gradual thawing, not an instant spring,” Daoud explained while highlighting that the full benefits of the removal from the grey list may lag behind the official announcement as foreign institutions will take time to update their anti-money laundering and counter-terrorist financing (AML/CFT) measures.
For the UAE, a country that was added to the list of jurisdictions under increased monitoring in March 2022, the delisting marks a rapid turnaround.
“This success is ...