In a historic vote signaling restored confidence, the European Union has removed the United Arab Emirates (UAE) from its list of high-risk third countries for money laundering. The decision was approved by the European Parliament on July 9, 2025, following months of technical assessment and policy reform.
The resolution passed with 264 votes in favour, 369 against, and 55 abstentions, as disclosed by Austrian Member of the European Parliament Reinhold Lopatka, who described it as “a good day for the UAE and for the EU.” The vote followed a recommendation by the Financial Action Task Force (FATF), which removed the UAE from its grey list in February 2024 after two years of close monitoring.
A Reform Journey: From Grey Listing to Global Trust
The UAE was originally placed on the FATF grey list in March 2022 due to concerns about weaknesses in its anti-money laundering (AML) framework. Key concerns included insufficient enforcement in the real estate sector, lack of transparency around beneficial ownership, and the use of shell entities.
In response, the UAE launched a national strategy under the newly created Executive Office of AML/CFT, led by Hamid Al Zaabi. The country implemented wide-ranging reforms:
– Prosecution of major money laundering cases.
– Mandatory disclosure of beneficial ownership data.
– Inter-agency coordination and international cooperation.
These reforms were recognized in early 2024, prompting FATF’s decision to remove the UAE from its watchlist — and clearing the path for the EU’s reassessment.
UAE Reaction: Statement by Minister of State
In response to the EU’s move, HE Ahmed bin Ali Al Sayegh, UAE Minister of State, issued a formal statement:
“The UAE welcomes the European Parliament’s endorsement of the European Commission’s updated list of high-risk third countries for money laundering. The decision stands as clear, independent recognition of our nation’s unwavering commitment to the highest international standards in combating global financial crime.”
He added:
“The UAE remains a reliable and strategic partner to the EU, committed to ensuring AML/CFT systems are not only robust, but also future-proof… We look forward to unlocking the full potential of the UAE-EU partnership, fostering closer cooperation, enhanced prosperity and shared security for our regions and peoples.”
Strategic and Economic Implications
This decision carries major economic and diplomatic weight:
– Lower compliance costs for UAE-based financial institutions and exporters.
– Enhanced investor confidence, particularly in Europe and North America.
– Positive momentum for the UAE–EU Free Trade Agreement, the first negotiation round of which took place in June 2025.
The UAE’s reputation as a global financial hub is also expected to strengthen, especially as it positions itself as a safe, transparent, and well-regulated destination for investment.
What This Means for the Region
The UAE’s removal from both the FATF and EU high-risk lists represents a milestone not just for its economy, but for its regional leadership role. As financial crime increasingly transcends borders, the UAE has positioned itself as a proactive global partner.
The focus now shifts to sustaining reform, investing in digital compliance systems, and supporting international efforts to disrupt illicit financial flows across jurisdictions.
