How the UAE landed itself on the Money Laundering Watchdog Grey List

The FATF (Financial Action Task Force) recently added UAE (The United Arab Emirates) to the grey list after it deemed that it had strategic deficiencies in combating money laundering. The UAE is one of the most important centers for trade and commerce in the world. A lot of money flows through its economy every day, most of it from trade with other countries.

What is the FATF?

The G7 countries created the FATF, an intergovernmental body, in 1989. The purpose of the FATF is to keep a close eye on any cross-border money laundering activities taking place. Its duties have since expanded to creating policies to deter terror funding and money laundering in any country. There are 39 member countries in the FATF. The FATF currently has two lists- the grey list and the Black list- which it uses to classify countries of concern.

Countries on the grey list do not suffer as severe repercussions as those on the Black List. Countries turning a blind eye towards the spread of blatant money laundering and terror funding are placed on the black list. The FATF has likely observed the beginnings of such activities in grey-listed countries. Placing a country on the grey list serves as a sort of warning for them. If they do not take any action against the spread of such activities, the FATF will most likely move them to the Black List.

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Posted from my blog with Exxp : https://www.regtechtimes.com/how-the-uae-landed-itself-on-the-anti-money-laundering-body-grey-list/

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