Off the Grey Lists: What the UAE’s Progress Means for the World

Back in February, the United Arab Emirates (UAE) was officially removed from the Financial Action Task Force (FATF) grey list. And now, the EU has followed suit, delisting the UAE from its own grey list under increased AML/CFT monitoring. These decisions mark a pivotal moment, not only for the UAE, but for the wider region and global financial community.

The world is shifting. As technology advances, faster than ever before, and more countries adopt digital security solutions, it becomes harder for criminals to operate within connected financial systems. But we can only shrink the amount of money getting into the wrong hands if we work together. 

We’ve worked closely with institutions across the Middle East and beyond as they’ve adapted to changing international expectations. We’ve seen firsthand what it takes to meet those expectations and how it feels to be recognised for the progress made. 

But the UAE’s success isn’t just a regional win. It offers a path forward for many other countries still navigating the demands of grey listing, especially in Africa, where nearly half of the jurisdictions on the FATF grey list are located.

So why are so many countries still on the list? And more importantly, how can they move forward?

What Are the FATF and EU Grey Lists and Why Does Sanction Screening Matter?

The FATF grey list identifies countries with strategic weaknesses in their anti-money laundering (AML) and counter-terrorist financing (CFT) systems. These countries are placed under increased sanctions screening while they work to address any deficiencies (1).

The EU’s grey list follows similar principles, flagging jurisdictions that pose external AML/CFT risks to the EU’s financial ecosystem.

Being on a grey list carries real consequences:

• Greater scrutiny from banks and international institutions
• Delayed or reduced investment inflows
• Reputational damage that can deter trade and partnerships
• Elevated compliance costs

Getting off the list requires more than good intentions. It means closing the gaps, proving reforms are working and demonstrating long-term commitment to financial integrity.

Why Are So Many African Countries Grey Listed?

Of the 24 countries on the FATF grey list today, 12 are in Africa (1). The reasons are complex, but there are common threads:

• Rapid digitisation with uneven regulation: Many economies are modernising fast, but legislation and enforcement can lag behind
• Under-resourced regulatory bodies: Capacity gaps make it hard to monitor, report and act at scale
• Fragmented financial ecosystems: A lack of regional interoperability makes compliance harder and increases risk

There’s already movement. The African Development Bank is pushing for regional harmonisation of AML/CFT rules. Systems like the Pan-African Payment and Settlement System (PAPSS) are improving cross-border transparency. These steps are seen as fostering economic stability and financial security for citizens (2).

The UAE’s Journey to Enabling Safer Financial Ecosystems

Over the last few years, the UAE has been actively working on its commitment to financial security by implementing new technologies, regulations and consumer protections. The Tax Support initiative raised awareness of business compliance around tax laws and regulations, while the government has been automating more financial processes and embedding biometric technology to ensure secure financial services (3).

At Eastnets, we see this as a powerful lesson in building long-term resilience. As Hazem Mulhim, Eastnets’ Founder and CEO, explains:

“The UAE’s removal from the EU grey list, following on from its removal from the FATF grey list in February, is a strong signal of continued progress, not only for the country, but for the wider region. It reflects a growing commitment to building robust, technology-led compliance frameworks that enable safer, more transparent financial ecosystems.”

Learning from the UAE: Pathways to Resilience

For financial institutions, regulators and governments worldwide, the UAE’s delisting is a valuable case study in how to strengthen financial resilience, restore global confidence and tackle financial crime head-on.

The UAE’s journey offers lessons for every jurisdiction striving to secure its financial ecosystem, especially those currently on FATF’s grey list, including countries in sub-Saharan Africa, Southeast Asia and Central America.

1. Aligning With Evolving Global Standards

The FATF’s updated Recommendation 16, released in June 2025, puts greater emphasis on payment transparency, particularly for cross-border transfers (4). It now calls for stronger verification of payee (VoP) processes, a requirement that will affect not just EU banks but any global institution processing EU-bound payments.

Eastnets is already helping clients prepare, as a qualified Registration and Verification Mechanism (RVM) provider. We’re enabling financial institutions to comply with VoP regulations by embedding secure, real-time validation into their payment workflows.

For grey-listed countries, staying ahead of these changes isn’t just about ticking boxes. It’s about restoring confidence and creating a foundation for future-proof compliance.

2. Investing in Smart, Scalable Technology

Manual processes struggle to keep up with today’s threat landscape. AI-powered compliance platforms help reduce false positives, flag unusual activity in real time and generate audit-ready reports. AI, blockchain and crowd technologies are rapidly becoming more intelligent. Embedding them properly across global financial systems can help us all work together in the fight against money laundering and financial fraud. 

3. Fostering Regional Collaboration Across Government and Industry

Effective AML/CFT reform doesn’t happen in isolation. Financial regulators, ministries, law enforcement and banks must share intelligence, standardise procedures and act together to close regulatory gaps.

4. Adopting a Risk-Based Approach

Regulators and institutions must tailor their AML/CFT responses based on sector, geography and client risk. This means continually monitoring customer risk, staying compliant and reducing operational complexity.

5. Strengthening Reporting and Data Sharing

Timely, accurate reporting is essential for effective oversight. Cross-border collaboration requires secure data sharing and all documentation needs to be audit-ready for regulators.

A Regional Opportunity

For countries like Kenya, South Africa, Côte d’Ivoire and Nigeria, all of which are currently under FATF monitoring, there’s an opportunity to turn scrutiny into strength.

Eastnets works closely with financial institutions across the Middle East, Africa and Asia to support this transformation. Our secure infrastructure, AI-driven compliance tools and advisory services empower banks and fintech companies to detect threats, meet global standards and build trust with international partners.

Beyond the Grey List: Toward a Safer Financial Future

From new regulatory expectations to emerging technologies, the global financial ecosystem is evolving fast. The UAE’s experience shows what’s possible. It also underscores a shared responsibility for governments, financial institutions and technology providers to protect the integrity of the global financial system.

As more countries continue to adopt intelligent technologies, we have a real opportunity to shrink financial crime and secure a resilient global future for all. 

Eastnets - supporting world financial institutions in their journey to compliance and financial integrity

‘’At Eastnets, we believe that financial integrity is the foundation for trust, growth and ultimately, safe financial inclusion for all. We're proud to support institutions in the region and beyond in the evolving battle against financial crime.” - Hazem Mulhim, Eastnets’ Founder and CEO

At Eastnets, we’re committed to supporting this mission. Whether through advanced AML software, KYC solutions or real-time fraud detection, we help our partners stay one step ahead.

Our range of financial crime prevention and payment compliance solutions help institutions around the world to automate due diligence, share data securely and enable cross-border collaboration. 

Talk to our experts about how our intelligent compliance solutions can help your institution build lasting financial resilience.

Sources and references

1. Financial Action Task Force (FATF)
2. Mintel, African De-dollarisation, 09 November 2023 - Africa
3. Mintel Global Intelligence, 2023
4. FATF updates Standards on Recommendation 16 on Payment Transparency
5. Financial Times