The United Arab Emirates’ (UAE) exited from the the grey list on 24th February 2024, nearly two years after its inclusion by the Financial Action Task Force.
- It will ease the road for the country’s investors seeking to acquire significant influence in Indian NBFCs.
- An RBI circular in 2021, had stated that investments in NBFCs from FATF non-compliant jurisdictions would not be treated at par with that from compliant jurisdictions.
- The Paris-based Financial Action Task Force highlighted how the oil-rich country had strengthened its regime for anti-money laundering and combating terrorist financing.
Financial Action Task Force (FATF)
- The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog.
- It sets international standards that aim to prevent these illegal activities and the harm they cause to society.
- The 39-member body (including India) sets international standards to ensure national authorities can effectively go after illicit funds linked to drugs trafficking, the illicit arms trade, cyber fraud and other serious crimes.
- The FATF was established in 1989 and is based in Paris.
- Its black list includes high-risk jurisdictions subject to a Call for Action. Currently the list includes Democratic People’s Republic of Korea, Iran and Myanmar.
