The Financial Action Task Force (FATF), the global body overseeing anti-money laundering measures, announced changes to its watchlists on Friday. The United Arab Emirates (UAE) was removed from its “grey list” after demonstrating significant progress in addressing deficiencies, while Kenya and Namibia were added.
The UAE, a key financial hub in the Middle East, had been placed on the grey list in 2022 due to concerns about money laundering risks. However, after implementing reforms and strengthening its anti-money laundering (AML) framework, the country has been deemed compliant with FATF standards. This move removes the UAE from increased monitoring and potentially boosts its financial reputation and competitiveness.
Despite efforts to improve their AML systems, Kenya and Namibia were added to the grey list due to ongoing deficiencies identified by the FATF. These deficiencies pertain to areas like identifying and reporting suspicious transactions, and implementing effective risk management measures. Both countries have agreed to action plans to address these issues, and their progress will be monitored closely.
Apart from the UAE, Barbados, Gibraltar, and Uganda were also removed from the grey list, while no nations were added to the “blacklist” reserved for the highest-risk jurisdictions. However, FATF continues to urge countries to apply countermeasures against Iran and North Korea, and enhanced due diligence regarding Myanmar.
The FATF reiterated its condemnation of Russia’s invasion of Ukraine and its suspension of the country’s participation in the body. It stressed that member countries are taking measures to mitigate the financial risks arising from Russia’s connections to nations under FATF countermeasures.
Overall, the latest updates highlight the ongoing efforts of the FATF to combat money laundering and terrorist financing globally. While the UAE’s removal from the grey list demonstrates the success of such efforts, nations like Kenya and Namibia face challenges they must address to ensure financial transparency and safety.
