The UAE was recently added to the FATF grey list. Beyond the ‘naming and shaming’, being listed carries practical consequences: the country’s AML rating will typically move up to ‘high(er) risk’ and lead to inclusion on various other negative/ watch lists of other intergovernmental bodies.
Other consequences include delays or rejection for cross-border financial transactions, and, over time, negative impact on potential foreign investments and trade opportunities.
The name and shame perception persists despite FATF’s claim that inclusion on the grey list is not a call for enhanced due diligence measures to be applied, but rather an encouragement for countries to take note of the information accompanying the listing, in their respective country AML risk analyses.