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 a robust legal framework against corruption, with strict laws and enforcement mechanisms in place, including the recent Federal Decree Law No. 56 of 2023 that created the UAE Accountability Authority to enhance transparency and governance. While corruption is not seen as a systemic issue and is rated low-risk by monitoring organizations, the reliance on local partnerships and the involvement of ruling families in business can create disparities. Overall, U.S. firms do not view corruption as a significant barrier to foreign direct investment in the UAE.

The United Arab Emirates (UAE) is actively pursuing economic diversification and regulatory reforms to reduce its reliance on hydrocarbon revenues and foster a knowledge-based economy. As a major trade and investment hub, the UAE attracts foreign direct investment through its political stability, advanced infrastructure, and favorable tax policies, including no personal income tax and low tariffs. Recent initiatives, such as the introduction of a corporate income tax and the establishment of a new federal Ministry of Investment, reflect the UAE's commitment to enhancing its investment climate and economic competitiveness.

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 favorable environment for investors, including no personal income taxes, low tariffs, and a streamlined investment strategy through the newly established federal Ministry of Investment. Additionally, the removal from the Financial Action Task Force's grey list in February 2024 highlights the UAE's commitment to enhancing its attractiveness as an investment destination.