UAE Slams EU Over “Black List” Designation, Raises Labor Concerns
The United Arab Emirates has sharply criticized the European Union for continuing to classify the country as having strategic deficiencies in combating illicit money flows, despite its efforts to strengthen its financial regulations, Bloomberg reports.
Speaking at the World Economic Forum in Davos, Switzerland, Economy Minister Abdulla bin Touq Al Marri expressed the UAE’s frustration with the EU’s continued “black list” designation, which has been in place despite the UAE being removed from the “gray list” by the global Financial Action Task Force (FATF) last year. The FATF is a global body based in Paris that monitors anti-money laundering and counter-terrorism financing efforts.
Al Marri said the UAE is actively engaged in diplomatic efforts to resolve the matter with the EU but provided no indication that the EU’s stance is softening. He also disclosed that the UAE would be holding discussions with the EU regarding its labor requirements, though he did not provide specifics.
The EU conducts regular assessments of third countries’ efforts against money laundering and the financing of international terrorism. Despite the UAE’s efforts to bolster its regulatory framework, the country remains on the EU’s list.
Adding to the UAE’s concerns is an upcoming EU directive that could penalize imports from countries that don’t recognize trade unions. This measure has raised alarms in the UAE, where such unions are not permitted.
While the UAE, an OPEC member, does not currently export significant quantities of crude oil to Europe, it is planning to increase its liquefied natural gas (LNG) exports to the region. This adds another layer of complexity to the strained relationship with the EU.
Qatar, another major LNG producer, has also voiced criticism of the EU’s climate directives, suggesting they could negatively impact fuel exports to the bloc.
In other remarks, Al Marri reiterated that while the UAE has introduced corporate taxes, it has no plans to implement income taxes.
