FATF Status

The United Arab Emirates is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Latest FATF Statement - 23 February 2024

The FATF welcomes the UAE’s significant progress in improving its AML/CFT regime. The UAE strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2022 including by: (1) increasing outbound MLA requests to facilitate ML/TF investigations; (2) improving understanding of ML/TF risks of DNFBP supervisors, applying effective and proportionate sanctions for AML/CFT noncompliance involving FIs and DNFBPs, and increasing STR filing for those sectors; (3) developing a better understanding of risk of abuse of legal persons and implementing risk-based mitigating measures to prevent their abuse; (4) providing additional resources to the FIU to increase its capacity to provide financial intelligence to LEA and making greater use of financial intelligence, including from foreign counterparts, to pursue high-risk ML threats; (5) increasing investigations and prosecution of ML; (6) ensuring effective implementation of TFS through sanctioning noncompliance among reporting entities and demonstrating a better understanding of UN sanctions evasion among the private sector. The UAE is therefore no longer subject to the FATF’s increased monitoring process.

The UAE should continue to work with MENAFATF to sustain its improvements in its AML/CFT system.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in the United Arab Emirates was undertaken in 2023. According to that Evaluation, the United Arab Emirates was deemed Compliant for 15 and Largely Compliant for 24 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

The UAE has established strict anti-corruption laws and enforcement mechanisms, including the recent Federal Decree Law No. 56 of 2023, which created the UAE Accountability Authority to enhance financial integrity and transparency. While corruption is not seen as a systemic issue and is rated low-risk by monitoring organizations, the reliance on local sponsorship for foreign companies and the involvement of ruling families can create economic disparities. Overall, the UAE's legal framework criminalizes bribery and embezzlement, contributing to a business-friendly environment despite challenges in transparency.

The economy of the United Arab Emirates (UAE) is characterized by ongoing efforts towards diversification and reducing reliance on hydrocarbon revenues, with a focus on building a knowledge-based economy supported by advanced technology and clean energy. The UAE has established itself as a significant trade and investment hub, attracting foreign direct investment through favorable policies such as no personal income taxes and low barriers to entry, while also implementing regulatory reforms to enhance the business environment.

The investment climate in the United Arab Emirates (UAE) is characterized by a strong push for economic diversification and regulatory reforms aimed at attracting foreign direct investment (FDI). The UAE offers a stable political and economic environment, low barriers to entry, and incentives such as no personal income taxes and the ability to repatriate capital, making it an attractive destination for multinational companies. Recent initiatives, including the establishment of a federal Ministry of Investment and the removal from the Financial Action Task Force's grey list, further enhance the UAE's appeal as an investment hub.