EU surprised: Russia and UAE removed from high-risk list!

EU surprised: Russia and UAE removed from high-risk list!

In an unexpected move, the EU has removed Russia and the United Arab Emirates (UAE) from its list of high-risk countries when it comes to financial crime. This caused considerable confusion among experts, as the evidence against Russia remains strong. The EU Commission has published an updated list to combat financial crime based on international standards. According to soester-anzeiger.de, the decision to delist Russia and the UAE is due to a requirement to provide clear, robust evidence to back up from the current classification differ.

The irritation over these deletions is underlined by the EU's earlier considerations of actually putting Russia on the gray list. This list highlights countries with identified deficiencies but which have already taken action to improve them. Experts question Russia's serious role in the fight against money laundering and the financing of terrorism, especially given its ties to North Korea, Iran and the Taliban, all of which are classified as high risk.

The complications and reactions

Russia's relations with these countries are not without controversy. Experts particularly criticize the support of mercenary groups such as the Wagner Group. In addition, Russia has been accused of carrying out subversion campaigns against the EU and the USA, which is fueling the discussion about removing Russia from the high-risk list. The UAE is also in focus; They could help Russia circumvent Western sanctions, for example by storing and processing oil shipments.

There is particular concern about the luxurious lifestyle of criminals in Dubai, which the data leak highlights. Non-transparent tax regulations are accused of encouraging this way of life. Still, the UAE Ministry of Economy signed memorandums of understanding in April to combat money laundering and terrorist financing, raising more questions than it answers.

Political dimensions and upcoming debates

The debate in the European Parliament on the updated list is imminent and MEPs now have two months to reject or accept the list. There is a great need among MEPs for a clear justification for the removal of the UAE while the readmission of Russia is being discussed. BaFin emphasizes that country risk plays a central role in the classification decision and that the current situation could influence both the EU and world politics.

The continued influence of the Financial Action Task Force (FATF) cannot be underestimated. Their regular audits and publication of reports, most recently in August 2022, are crucial for the reputation of countries in the international financial market. Ultimately, the EU's new position could have a negative impact on comprehensive cooperation to combat money laundering and terrorist financing if clear measures are not taken soon.