The UAE has been put on the 'gray list' of the Financial Action Task Force's money laundering watchdog.

• The "gray list" of the watchdog group is not as strict as its "black list," which currently has North Korea and Iran listed.
• Numerous international companies have their headquarters in the UAE, which is the financial hub of the Middle East.

The United Arab Emirates was placed on the "gray list" by an intergovernmental organization on Friday due to concerns about its efforts to combat money laundering and illicit cash flows.

The Financial Action Task Force has identified the UAE as one of several countries that require enhanced scrutiny due to weaknesses in their anti-money laundering measures.

The FATF is collaborating with jurisdictions under increased monitoring to address strategic deficiencies in their regimes to combat money laundering, terrorist financing, and proliferation financing, according to the organization.

The FATF increases monitoring of a jurisdiction when the country commits to resolving swiftly identified strategic deficiencies.

The Emirates News Agency announced on Friday that the Financial Action Task Force (FATF) recognized the United Arab Emirates' progress in combating money laundering, terrorism financing, and proliferation financing.

The "gray list" of the watchdog group is not as strict as its "black list," which contains North Korea and Iran.

Pakistan, Turkey, Jordan, and Yemen are among the other countries on the gray list.

The Middle East's financial center, the UAE, hosts many international companies' headquarters, the world's busiest airport, and a nearly 90% expat population.

The UAE is highly committed to safeguarding the global financial system's integrity and will collaborate with the FATF to promptly address any areas requiring improvement, as stated by the country's anti-money laundering agency, according to Emirates News Agency.