The United Arab Emirates was being monitored along with over 20 other countries deemed dangerous by the Financial Action Task Force (FATF), an organisation that unites nations ranging from China to the US to combat financial crime.

The United Arab Emirates: a haven for thriving companies

The Gulf nation, which has long drawn hedge funds, millionaires, and bankers, came under FATF investigation in 2022 due to a significant risk of money laundering and terrorism financing involving banks and other high-ranking entities. The country's efforts to promote banking and transaction openness are acknowledged by the delisting, which will encourage more investment in the sector and keep it among the richest countries since the late 1950s.

But even after being placed on the blacklist, the nation kept drawing investment from companies all over the world and has grown in popularity among Russians and cryptocurrency companies as a result of the ongoing conflict in Ukraine.

In addition, Dubai has surpassed Belgium to become the world's top trading hub for rough diamonds in 2023. In terms of the luxury property market, Dubai is now the fourth most popular destination in the world, behind New York, Los Angeles, and London.

The fight for AML regulations is still ongoing.

The UAE is still regarded by the European Union, along with about 25 other nations like Afghanistan, North Korea, and South Africa, as being at high risk for money laundering and terrorism funding, despite the UK's FATF decision to whitelist the nation. It is evident that, in certain situations, following regulations doesn't really make a difference in the long run when European banks and other institutions are prohibited from clearing trades with the Dubai Commodities Clearing Corporation by ESMA, the EU's watchdog over financial markets.

The regulator for the European Union has expressed concerns, but the United Arab Emirates (UAE) is working to prevent financial crime and suspicions of money laundering. It is also developing non-oil sectors of the economy, such as technology, tourism, trade, and logistics, in order to diversify its funding sources and become less dependent on dubious ones. Concurrently, the rivalry amongst Gulf states has intensified lately, and luring foreign capital has become a primary focus of the nations' endeavours.

In order to reduce cryptocurrency speculation and funding from dubious sources, the UAE has taken a number of proactive steps, including strengthening international collaboration, stepping up financial investigations and prosecutions, and harmonising virtual asset legislation with international standards.