On 9 July 2025, the European Parliament approved the European Commission’s proposal to revise the list of countries with a high risk of money laundering and terrorist financing. The United Arab Emirates is among the most remarkable jurisdictions to leave the list.
- The UAE is no longer classified as a high-risk jurisdiction for money laundering and terrorist financing.
- Improvements in judicial and law enforcement cooperation with EU member states facilitated the UAE's removal from the list.
- Removal provides UAE clients easier access to EU financial services and enhances international transactions.
- The EU maintains ongoing dialogue with the UAE to monitor compliance with agreed measures.
- Eight territories were removed from the list, while ten new jurisdictions were added, highlighting ongoing changes in EU policies.
The UAE’s exit from the “high risk” category represents a significant milestone in its commitment to meeting international standards. To achieve this, the country has implemented extensive reforms in its legal and financial systems and improved cooperation with international institutions.
The UAE is no longer considered a high-risk jurisdiction
The UAE was taken off the FATF “grey list” back in February 2024. However, the same decision at the EU level faced resistance in the European Parliament, which caused the process to extend for more than a year. Concerns were raised regarding the judicial and law enforcement cooperation with EU countries, including issues related to extradition and mutual legal assistance.
In April 2025, the UAE committed to implementing a set of measures to improve cooperation between its judicial and law enforcement agencies, both with EU member states directly and through Eurojust, Europol and the European Public Prosecutor’s Office.
Following these commitments, the EU decided to remove the UAE from the list of “high-risk” countries. The corresponding decision was made by the European Commission on 10 June 2025. The Commission plans to maintain an ongoing dialogue with the UAE and monitor the implementation of the agreed measures.
What does the removal of the UAE from the EU list mean?
The removal from the EU list shows that the UAE has effectively addressed concerns regarding money laundering and terrorist financing and made relevant commitments to resolve any outstanding issues.
EU financial institutions will no longer be required to implement enhanced due diligence measures in relation to UAE clients in each case, which can contribute to:
- a better environment for international transactions and mutual investments between Emirati and European businesses;
- easier access to the EU financial and other service providers for UAE companies and residents;
- streamlined procedures for opening accounts, establishing companies, and utilising accounting, auditing, or legal services.
What other changes were made to the list?
As a result of the update, eight jurisdictions have been removed from the list, while ten new jurisdictions have been added.
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What countries pose a “high risk” from the EU perspective?
The following countries are currently included in the EU list of high-risk jurisdictions:
Afghanistan, Algeria, Angola, Burkina Faso, Cameroon, Democratic Republic of the Congo, Haiti, Iran, Ivory Coast, Kenya, Laos, Lebanon, Mali, Monaco, Mozambique, Myanmar, Namibia, Nepal, Nigeria, North Korea, South Africa, South Sudan, Syria, Tanzania, Trinidad and Tobago, Vanuatu, Venezuela, Vietnam, Yemen.
What is the purpose of the high-risk jurisdiction list?
The list of high-risk jurisdictions is maintained and regularly updated in accordance with the Directive (EU) 2015/849 of 20 May 2015. This Directive, known as the 4th Anti-Money Laundering Directive, aims to prevent the use of the financial system for money laundering or terrorist financing. It authorizes the European Commission to identify third countries (non-EU states) that have significant deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) regimes.
The AML/CFT requirements apply to European financial organisations and certain independent professionals which include:
- banks and other financial institutions;
- auditors and accountants;
- tax consultants;
- providers of trust and corporate services;
- legal professionals (if involved in planning real estate or M&A transactions, managing clients’ assets or accounts, creating and managing trusts, foundations or similar structures);
- providers of gambling services;
- persons trading in works of art and others.
Based on the high-risk jurisdiction list, European service providers can evaluate the risks of accepting clients and processing transactions related to such jurisdictions.
What is the difference between the EU and FATF lists?
When listing high-risk jurisdictions, the EU takes into account the relevant FATF list (published by the Financial Action Task Force). However, the two lists may not always align.
For example, as of June 2025, the British Virgin Islands are included on the FATF “grey” list, which indicates countries under increased monitoring, but not on the EU list. Conversely, Vanuatu is on the EU list but does not appear on the FATF list.
The difference between various EU jurisdiction lists
It is important to distinguish the European list of high-risk jurisdictions for AML/CFT purposes from another well-known EU list of “non-cooperative” jurisdictions for tax purposes, commonly referred to as the EU blacklist. These two lists serve different purposes and contain different information.
The EU list of “high-risk” countries shows jurisdictions that may threaten the EU financial system due to the risk of money laundering and terrorist financing. It can impact international payments and the ability to access services from EU financial institutions.
In contrast, the EU list of non-cooperative tax jurisdictions targets countries whose tax policies, in the view of the EU, may adversely affect the fiscal interests of its member states. It primarily affects the level of taxation of cross-border payments and the right to use tax incentives.
Consequences of having a jurisdiction on the EU list
If a jurisdiction is listed, the EU entities subject to AML/CFT requirements must implement enhanced customer due diligence measures when engaging with clients from that jurisdiction.
For example, if a resident of a jurisdiction listed as “high-risk” seeks services from a bank, consultancy, or auditing firm in an EU country, they should be prepared to provide more documents and information about their business and source of funds. The involvement of a high-risk jurisdiction can be indicated not only by a potential client’s citizenship or residency but also by the structure of a company’s beneficial ownership, the location of its business partners, and the routes of incoming and outgoing payments.
Simply belonging to a high-risk country does not automatically disqualify a person or company from receiving services or conducting transactions. However, based on the findings from due diligence and in accordance with its internal policies, the service provider may choose to refuse the requested services.
