European countries Advocate Further Sanctions on the UAE for Specific Reasons
Amid Abu Dhabi’s Infamous History of Money Laundering and Terror Financing, European Nations Urgently Pursue Heightened Sanctions Against the UAE
European countries opposed any move by the Financial Action Task Force (FATF), which monitors international financial crimes, to remove the UAE from the “gray list” of countries and territories where there is a risk of illicit financial flows.
Representatives of European countries confirmed that the UAE’s exit from the list contradicts the assessment of European officials. The European Union regards the UAE, along with over 24 other nations such as South Africa, North Korea, and Afghanistan, as a high-risk jurisdiction for money laundering and terrorist financing.
Last year, the European Securities and Markets Authority banned European banks and others from dealing with Dubai Commodities Clearing Company.
Marcus Mainzer, policy director at Tax Justice Network, a financial transparency company, said that the possibility of the UAE being removed from the FATF list shows that the list is ineffective.
Measures taken by the UAE include increasing financial investigations and prosecutions, enhancing international cooperation, and harmonizing virtual asset regulations with international standards.
Under American and Chinese pressure, the FATF Group seeks to remove the UAE from the gray list, which includes about 24 countries considered high-risk.
The UAE, which attracts wealthy people, bankers, and hedge funds, was subject to intense scrutiny in 2022 when the group pointed to the risks of money laundering and terrorist financing linked to banks, metals, precious stones, and real estate as well.
Recently, the United Kingdom included the UAE on the list of high-risk countries for the purposes of combating money laundering, in the latest international scandal of Abu Dhabi’s deteriorating reputation.
The UAE, alongside Yemen, Syria, and Iran, featured on the British list, marking the only Middle Eastern countries included.
This marks the UAE’s inaugural appearance on the British list since its last issuance in May 2020.
This aligns with the practices of the Financial Action Task Force (FATF), which subjects countries to intense monitoring. All countries listed by the FATF exhibit substantial shortcomings in their efforts to combat money laundering, terrorist financing, and controls against proliferation financing.
A research study showed that the UAE ranks very advanced in the Arab world and globally in money laundering and terrorist financing crimes, which has repeatedly made it vulnerable to international sanctions.
According to a study titled “Money Laundering in the Global Political Economy” by the “Al-Zaytouna Center for Studies and Consultations,” the UAE secured the second position in the Arab world and ranked 44th globally in terms of money laundering crimes.
