The United Arab Emirates is at increased risk of being placed on a global watchdog’s list of countries subject to more oversight for shortcomings in combating money laundering and terrorist financing, even after a recent government push to stamp out illicit transactions.
The Financial Action Task Force is leaning toward adding the UAE to its "gray list” early this year, one of two classifications used by the intergovernmental body for nations determined to have "strategic deficiencies,” according to people familiar with the matter, who requested anonymity because the discussions are private.
Should the FATF approve the designation, it would be among the most significant such steps in the Paris-based group’s three-decade history, given the UAE’s position as the main financial hub of the Middle East. The FATF currently has 23 countries — including Albania, Syria and South Sudan — under closer scrutiny, with only Iran and North Korea on its highest-risk "black list.”