FATF adds UAE to 'grey' list

• On 4th March 2022, Financial Action Task Force (FATF) has included United Arab Emirates (UAE) in its grey list.

• FATF is an inter-governmental body established by the G7 countries in 1989.

• It is mainly a policy-making body and its mandate is to promote reforms in a country’s financial system to combat money-laundering and terror financing.

• The UAE, an oil and gas exporter that touts open-for-business credentials and enables glitzy expatriate lifestyles, has in recent years tightened regulations to overcome an image as a hotspot for illicit money.

• The designation is a blow for the country as economic competition accelerates with Gulf neighbour Saudi Arabia, the world's top oil exporter and biggest Arab economy.