EU Adds Lebanon to Money-Laundering Blacklist, Removes UAE

Significant political and economic implications for the countries concerned

The European Union announced on Tuesday that it has removed the United Arab Emirates from its list of high-risk countries for money-laundering and terrorist financing, while adding Algeria, Lebanon, Monaco and several others. The update carries significant political and economic implications for the countries concerned.

The European Commission confirmed that Algeria, Angola, Cote d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela have been added to the list of jurisdictions requiring enhanced scrutiny of their anti-money-laundering (AML) and counter-terrorist financing (CTF) measures. Meanwhile, the UAE joins seven other countries, including Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal and Uganda, that have been removed from the list following improvements in their regulatory frameworks.

The UAE’s removal marks a key milestone in its efforts to align with international financial standards. Long under scrutiny over money-laundering concerns, the Gulf state has implemented sweeping reforms in its legal and financial systems, tightened regulatory oversight and improved cooperation with global institutions. Its delisting by the EU reflects the perceived effectiveness of these reforms.

Crucially, it also lifts the burden of enhanced due diligence measures previously required by European financial institutions, making cross-border transactions with the UAE smoother and more attractive to investors. The move is expected to boost European investment flows and reinforce the UAE’s image as a transparent, globally-connected financial hub.

By contrast, Algeria’s addition to the list suggests the EU sees serious shortcomings in the country’s legislative and regulatory frameworks for combating financial crime. While details of the decision were not specified, the inclusion implies concerns over transparency, enforcement capacity and the effectiveness of oversight mechanisms.

The listing could complicate Algeria’s financial relations with Europe, which remains its largest trading partner and may reduce the appetite for foreign investment unless urgent reforms are introduced. Increased pressure is now likely on Algerian authorities to update financial laws and adopt stricter compliance measures in line with international standards.

Lebanon’s inclusion on the list comes amid its prolonged economic and political crisis, widespread institutional dysfunction and concerns over the financing of non-state armed groups. The EU’s decision reflects a growing lack of confidence in Beirut’s capacity to monitor financial flows effectively or enforce AML and CTF measures.

These changes follow similar actions taken earlier this year by the Financial Action Task Force (FATF), the Paris-based watchdog that reviews global compliance with AML and CTF standards. FATF previously removed the Philippines from its grey list while adding countries such as Laos and Nepal. Monaco, though part of the European Economic Area, was also placed under enhanced monitoring by FATF in mid-2024 and now appears on the EU’s list as well.

European Commissioner for Financial Services Maria Luis Albuquerque stated that the latest update reaffirms the EU’s commitment to international financial standards and to maintaining consistency with FATF assessments. The revised list will now be reviewed by the European Parliament and member states, and, barring any objections, will come into force within one month.

The EU’s blacklist serves as a key instrument for encouraging regulatory reform and financial transparency. While inclusion can result in economic isolation and hinder investment, removal is widely seen as an endorsement of a country’s compliance efforts and a boost to its financial reputation.