EU Removes UAE from Money Laundering Risk List, Adds Lebanon, Algeria, and Monaco

Watan-The European Union announced Tuesday the removal of the United Arab Emirates from its list of “high-risk” countries for money laundering. However, it added Monaco, Lebanon, Algeria, and several others to the list.

The European Commission stated it has included Algeria, Angola, Ivory Coast, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela on its updated list of countries requiring additional oversight for their money laundering controls.

In addition to removing the UAE, the Commission also delisted Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and Uganda from the same list.

The FATF, based in Paris, monitors efforts by over 200 countries to combat money laundering and terrorism financing. Its “grey list” includes countries subject to enhanced scrutiny of financial transactions.

According to a report by French magazine Jeune Afrique, the EU views the listed countries as having “strategic deficiencies in their anti-money laundering and counter-terrorism financing systems,” which, according to Brussels, pose “serious threats to the European financial system.”

The report adds that Algeria, Angola, Ivory Coast, Kenya, and Namibia—already on the FATF grey list since February—have now been added to the EU’s black list. South Africa, which is also under EU monitoring, is a FATF member.

EU Blacklist Not Final as Countries Show Reform Efforts

The European Commission affirmed that these countries “have shown high-level political commitment and developed action plans with the FATF to close identified gaps.” However, despite welcoming these steps, it noted that “the deficiencies have not yet been fully addressed.”

In May 2024, the EU introduced a new institutional and legal framework, including the creation of the Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA), which has direct and indirect supervisory powers over high-risk financial entities.

The report emphasizes that being placed on the EU blacklist is not permanent. While five African countries were added on June 10, two—Senegal and Uganda—were removed. The Commission considers that “both have addressed their shortcomings.”

In an October 25 report, the FATF praised Côte d’Ivoire’s progress in strengthening its legal framework against money laundering and terrorism financing, but said further reforms are needed, hence its inclusion.

In response, the Ivorian government pledged to improve cooperation in investigations and enforce exemplary sanctions in case of violations.

A similar response came from Algeria, which must revise its risk control mechanisms and implement targeted financial sanctions to address shortcomings in its system. The FATF chair stated: “Being on the grey list is not a punitive measure… it’s intended to guide countries in improving their action plans.”