BRUSSELS – July 10, 2025: The European Union has officially removed the United Arab Emirates (UAE) from its list of high-risk countries for money laundering and terrorism financing. This move follows months of evaluations and reflects the UAE’s progress in financial transparency and enforcement.
The European Commission acknowledged that the UAE has made “substantial improvements” to its legal framework and regulatory systems. The country has adopted stricter laws, improved monitoring systems, and increased its prosecution efforts. These changes were seen as effective in addressing the deficiencies that once landed the UAE on the EU’s high-risk list.
UAE officials welcomed the EU’s decision, calling it “a global recognition” of their efforts against financial crimes. They noted that the country took several serious steps, including overhauling enforcement agencies, launching investigations, and freezing suspicious assets. UAE’s Ministry of Economy said it will continue to work closely with international partners to uphold global standards.
Additionally, the EU and UAE have now agreed to begin negotiations on a Free Trade Agreement (FTA). This development is expected to boost trade ties and open new investment opportunities between the Gulf state and European countries. Economic experts see this as a strategic breakthrough in regional diplomacy and international finance.
In February 2024, the Financial Action Task Force (FATF) had already removed the UAE from its “grey list”, citing clear progress. The EU’s latest step is seen as a strong vote of confidence in the UAE’s commitment to global financial norms, and a sign that the nation is emerging as a reliable economic partner on the world stage.