The European Commission has officially updated its list of high-risk third countries jurisdictions identified as having strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks. Among the most significant changes in this revision is the removal of the UAE, marking a pivotal shift in the country’s global financial standing.
What Is the EU High-Risk List?
The European Union maintains a list of third countries that pose threats to the integrity of the Union’s financial system due to weak AML/CFT controls. This list is developed in close coordination with the Financial Action Task Force, the global authority on combating illicit financial activity.
Countries Recently Added and Removed
In the latest revision, the EU added the following countries to the high-risk list:
- Algeria
- Angola
- Côte d’Ivoire
- Kenya
- Laos
- Lebanon
- Monaco
- Namibia
- Nepal
- Venezuela
At the same time, eight jurisdictions were removed from the list after demonstrating significant progress in improving their AML/CFT systems:
- UAE
- Barbados
- Gibraltar
- Jamaica
- Panama
- Philippines
- Senegal
- Uganda
What this Means for the UAE’s Economy
The delisting comes with significant economic advantages. Once the legal changes are ratified by the European Parliament and the Council, EU-based financial institutions will no longer be required to apply enhanced due diligence procedures when dealing with entities linked to the UAE. This translates into reduced compliance costs, faster processing times, and greater ease of doing business across borders.
More importantly, the decision strengthens investor confidence in the UAE’s financial system. It highlights the country’s commitment to transparency, robust oversight, and institutional maturity factors that are essential for attracting sustainable foreign investment and supporting long-term economic diversification.
The timing is also important. The EU is the UAE’s second-largest trading partner, and both sides have recently agreed to launch negotiations on a free trade agreement. During an April 2025 call between European Commission President Ursula von der Leyen and UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, both leaders committed to pursuing a modern, ambitious trade pact focused on liberalising goods, services, and investment. Key strategic sectors on the agenda include renewable energy, green hydrogen, and critical raw materials.
A Defining Step Forward
The EU’s decision to delist the UAE is more than a regulatory update it is a clear endorsement of the country’s strategic reforms and its aspirations as a global economic powerhouse. It provides a solid foundation for the UAE to deepen trade ties with Europe, attract high-quality investment, and continue its trajectory toward becoming a leading international financial centre.
In a global climate where trust and compliance go hand in hand, the UAE’s ongoing reforms offer a powerful example of both.
At One Investments, we are committed to driving initiatives that enhance Dubai’s stature as a world-class investment hub. With our in-depth market insight, we help clients identify strategic opportunities designed to generate stable and sustained growth.
