Previously alleged to be involved in financial wrongdoings and crimes, Dubai has now been steered free of economic crime charges. The Kingdom United Arab Emirates' financial hub and primary landscape, Dubai, has been dropped from a global watchdog's list of countries at risk of illicit money flows. The Financial Action Task Force (FATF), a body that groups countries from the United States to China to tackle financial crimes, has now dropped the UAE from its 'grey list' of around two dozen nations considered risky.
Dubai, the financial hub, was under severe scrutiny after attracting numerous millionaires and was put on the Financial Action Task Force. It is pertinent to mention that Dubai has attracted billionaires, bankers and hedge funds, after which it was placed on the list.
Dubai was placed under closer scrutiny in 2022 when the FATF highlighted the risk of money laundering and terrorist financing involving banks, precious metals and stones, as well as property.
Dubai had made getting off the list a priority, bolstering its anti-money-laundering efforts in a drive spearheaded by the minister of foreign affairs and brother of President Mohamed bin Zayed Al Nahyan, John Kartonchik, a director at UAE think tank Re/think, said the move could boost confidence in the country and attract more money from overseas. Yahoo Finance quoted a banker saying, "Banks would also be able to cut the cost of dealing with wealthy clients in the country."
However, being grey-listed, the United Arab Emirates continued to attract the globe's wealth, and it is an increasingly popular destination for cryptocurrency firms and Russians in the wake of war with Ukraine. Dubai's luxury property market trailed only New York, Los Angeles, and London in 2022, according to property consultant Knight Frank, while the UAE overtook Belgium last year to become the world's trading hub for rough diamonds.
On the other hand, the European Union lists the UAE as a high-risk country for money laundering and terrorist financing, alongside more than two dozen other states, such as South Africa, North Korea and Afghanistan.
Jonny Bell, director of financial crime compliance and payments at LexisNexis Risk Solutions, said the UAE would likely continue strengthening its anti-money laundering and counter-terrorism financing measures. Gulf states are increasingly competing to develop non-oil sectors such as financial services, trade and logistics, and tourism. Attracting money from abroad is a central part of that effort.
Open to changes and transparency, under the Social Agenda of 2030; the Kingdom has vowed to clear the region's name in all the discrepancies as the region aims to attract billionaires and tourists yet again.