United Arab Emirates Country Summary

FATF Status

The United Arab Emirates is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in the United Arab Emirates was undertaken in 2023. According to that Evaluation, the United Arab Emirates was deemed Compliant for 15 and Largely Compliant for 24 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

The United Arab Emirates (UAE) has established strict laws and enforcement mechanisms against corruption, with high-profile cases pursued to maintain integrity within both public and private sectors. Despite the low-risk corruption environment, challenges remain due to conflicts of interest among senior officials and the reliance on personal relationships for business success, alongside the presence of economic disparities influenced by ruling families.

In terms of crime, the UAE faces significant challenges, particularly in human trafficking, drug trafficking, and cyber crimes, with organized crime largely driven by foreign criminal networks. While the government adopts a strong stance against these issues, enforcement is hindered by regulatory loopholes and limited civil society engagement, which restricts accountability and transparency efforts.

The United Arab Emirates (UAE) is actively pursuing economic diversification and regulatory reforms to reduce its reliance on hydrocarbon revenues and foster a knowledge-based economy driven by advanced technology and clean energy. As a major trade and investment hub in the Middle East and beyond, the UAE attracts foreign direct investment (FDI) through favorable policies, including the absence of personal income taxes, low tariffs, and incentives for expatriates and businesses. Recent initiatives, such as the establishment of a federal Ministry of Investment and the introduction of a corporate income tax, reflect the UAE's commitment to enhancing its investment climate while addressing sustainability and Emirati employment through targeted reforms and incentives.