Anti-money-laundering body puts UAE on global 'gray' list
ABC News
A global body focused on fighting money laundering has placed the United Arab Emirates on its so-called “gray list.”
DUBAI, United Arab Emirates -- A global body focused on fighting money laundering has placed the United Arab Emirates on its so-called “gray list” over concerns that the global trade hub isn't doing enough to stop criminals and militants from hiding wealth there.
The decision late Friday night by the Paris-based Financial Action Task Force puts the UAE, home to Dubai and oil-rich Abu Dhabi, on a list of 23 countries including fellow Mideast nations Jordan, Syria and Yemen.
While not expected to dent business in the Emirates, a federation of seven sheikhdoms on the Arabian Peninsula home to a multitude of economic free zones and real estate ventures, it could strike at the country's carefully managed business-friendly image. Ratings agencies and other financial institutions also consider such a listing as a risk, which can affect interest rates for loans.
While praising the UAE's “significant progress,” the body known as FATF said more needed to be done. Already, the UAE has established a corporate registry and signed extradition agreements with other nations.