Why Is the EU Taking the UAE and Gibraltar Off Its Grey List? Let’s Unpack It.
Here’s a question worth asking: What happens when a country lands on the EU’s “grey list” for money laundering? And maybe more intriguingly, what does it mean when it gets removed?
That’s exactly what just happened with the United Arab Emirates (UAE) and Gibraltar. After months of discussions (and a bit of political drama), the European Union has voted to take both off its money laundering “grey list,” a move with big financial, diplomatic, and reputational implications.
Let’s explore what this all means and why it matters, especially for businesses and regulators watching global finance trends.
What Is the “Grey List,” Anyway?
The EU maintains a list of countries that it believes have deficiencies in preventing money laundering and terrorism financing. Being on this list doesn’t mean a country is outright bad at policing financial crime, but it does mean regulators think more work is needed.
What’s the catch? If your country is listed, your financial transactions become more complicated. Banks and businesses are required to apply extra due diligence to anything involving your region. That means more checks, more paperwork, and yes, more costs.
For places like the UAE and Gibraltar, that grey listing has been an ongoing thorn in the side, particularly as both have tried to position themselves as reputable financial hubs.
So, Why Are the UAE and Gibraltar Being Removed?
After making a number of reforms, both countries seem to have convinced EU officials they’re taking financial crime more seriously.
The UAE, in particular, had been lobbying hard to be delisted, even raising the issue during trade negotiations with Brussels. According to EU insiders, trade commissioner Maroš Šefčovič personally urged lawmakers to support the removal, especially as Abu Dhabi was flagging the listing as a roadblock to closer cooperation.
And it worked. Lawmakers voted in favor of the change, with the decision expected to take effect in the coming weeks.
Interestingly, both the UAE and Gibraltar were also taken off the Financial Action Task Force (FATF) grey list back in 2024. The EU’s move follows that decision closely, signaling some alignment with FATF’s global standards.
Why Was This So Controversial?
Gibraltar’s removal wasn’t exactly smooth sailing. Spain, which claims sovereignty over the British overseas territory, wasn’t thrilled. In fact, Spanish lawmakers had previously blocked similar efforts due to political tensions.
Meanwhile, some members of the European Parliament still expressed concerns about how seriously the UAE enforces its anti-money laundering standards. But despite the pushback, a majority voted to go ahead, possibly encouraged by the broader diplomatic and economic benefits of cooperation.
Who Else Is In, or Out?
Alongside the UAE and Gibraltar, the EU is also delisting Barbados, Jamaica, Panama, the Philippines, Senegal, and Uganda, all of whom have reportedly improved their frameworks.
On the flip side, ten new countries are being added to the grey list, including Algeria, Kenya, Venezuela, Laos, and even Monaco, a long-standing hotspot for private banking.
One country that’s been at the center of attention? Russia. Although the EU is under pressure to list Russia due to its ongoing war in Ukraine, they’ve decided to postpone the decision, citing legal risks.
What Happens Next?
For the UAE and Gibraltar, this is a reputational win. It sends a signal to the global business community: “We’re tightening up. You can trust us.”
As UAE Minister Ahmed Al Sayegh put it, the country now aims to “unlock the full potential” of its partnership with the EU, and that includes expanding trade, investment, and security cooperation.
For businesses? This delisting could mean faster transactions, fewer compliance headaches, and a clearer path to doing business in these regions.
Curious to see which countries are next on or off the list? Keep an eye on the FATF updates!
