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The European Commission has proposed removing the UAE from its list of high-risk countries for money laundering and terrorist financing, while adding Algeria and Lebanon along with eight other jurisdictions, according to a statement published by the commission.
Under the delegated regulation update, which may take effect within a month unless blocked by EU member states or the European Parliament, the UAE will be delisted alongside Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda.
In contrast, Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela will be classified as high-risk jurisdictions subject to enhanced monitoring.
The EU’s high-risk list, established under the Fourth Anti-Money Laundering Directive, identifies third-country jurisdictions with strategic deficiencies in AML/CFT regimes. Inclusion prompts greater scrutiny from EU financial institutions and complicates access to funding.
Significant implications for the UAE and other countries
- UAE: Having been added to the EU’s list in March 2023, the UAE has undergone extensive reforms, including a national anti-money laundering strategy. Its removal follows its February 2024 exit from the FATF’s “grey list” and is grounded in improvements in legislative oversight, regulatory systems, and enforcement action.
Read: UAE approves new AML, CFT national strategy for 2024-27
- Algeria: Persistent concerns about corruption and financial misconduct, highlighted by a 2024 Transparency International ranking of 107th globally and high-profile prosecutions — including a five-year jail term in April for a former presidential aide — have underpinned its inclusion.
- Lebanon: Added amid its prolonged economic and political turmoil, Lebanon’s vulnerabilities include its connection to non-state armed groups.
The commission based its update on FATF’s grey list, bilateral dialogues, on-site reviews, and a thorough technical assessment. It reaffirmed alignment with FATF standards and reiterated the EU’s resolve to protect its internal financial system through global AML/CFT cooperation.
For the changes to become effective, they must undergo a one-month scrutiny period during which the European Parliament or Council can raise objections.
