The European Union has voted to remove the United Arab Emirates (UAE) and Gibraltar from its “grey list” of countries with inadequate money laundering and counter-terrorism financing (AML/CFT) controls. The decision, passed by a majority of EU lawmakers, is expected to ease diplomatic tensions and facilitate trade negotiations—particularly with the UAE.
The delisting follows months of lobbying by Abu Dhabi, which raised the issue during trade talks with Brussels. In response, EU Trade Commissioner Maroš Šefčovič reportedly urged his fellow Social Democrat MEPs to back the European Commission’s proposal to remove the jurisdictions from the list. The removals will become official in the coming weeks after publication in the EU’s official journal.
Inclusion on the grey list subjects countries to reputational harm and increased financial scrutiny, with banks and institutions required to perform additional due diligence when dealing with listed entities. The decision to remove the UAE and Gibraltar comes after the Financial Action Task Force (FATF)—the global watchdog on financial crime—also delisted both jurisdictions in 2024.
Ahmed Ali Al Sayegh, UAE Minister of State, welcomed the EU’s decision, describing it as a recognition of the Gulf nation’s ongoing reforms. “The UAE remains a reliable and strategic partner to the EU, committed to ensuring AML/CFT systems are not only robust, but also future-proof,” he said, emphasizing a shared interest in regional security and prosperity.
Gibraltar’s removal, however, stirred controversy among Spanish MEPs due to Madrid’s longstanding claim to the British overseas territory. A similar effort to delist Gibraltar and the UAE last year failed over these concerns, coupled with skepticism about the UAE’s compliance standards.
Despite opposition, the latest vote passed after the Commission pledged to revisit the issue of greylisting Russia—an effort that helped secure broader parliamentary support. Russia was not added to the list this round, but a reassessment is expected by the end of the year.
The European Commission praised the outcome, saying it reflects “the important and successful efforts undertaken by the countries that are being delisted in strengthening the effectiveness of their frameworks for fighting money laundering and countering the financing of terrorism.”
In addition to the UAE and Gibraltar, six other countries will be removed from the EU grey list: Barbados, Jamaica, Panama, the Philippines, Senegal, and Uganda.
Conversely, ten new countries have been added, including Algeria, Angola, Ivory Coast, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela—marking a shift in the EU’s ongoing efforts to combat financial crime and terrorism financing across developing and high-risk regions.
The EU grey list typically mirrors that of FATF, though Brussels retains the discretion to diverge, especially in politically sensitive cases such as Russia, whose FATF membership remains suspended following its 2022 invasion of Ukraine.
As the EU adjusts its oversight framework, the delisting of strategic partners like the UAE underscores a broader diplomatic balancing act between regulatory enforcement and international trade relations.
