An international body fighting money laundering says the United Arab Emirates isn’t doing enough to stop criminals and militants from hiding wealth there.
Paris-based Financial Action Task Force on Friday placed UAE on its “gray list” of 23 countries, including Jordan, Syria and Yemen.
The Emirates, a federation of seven sheikhdoms on the Arabian Peninsula, is home to a multitude of economic free zones and real estate ventures.
Its inclusion on the list could strike at the country’s carefully managed business-friendly image.
Ratings agencies and other financial institutions also consider such a listing as a risk, which can affect interest rates for loans.
Senior Emirati diplomat Anwar Gargash wrote on Twitter the country had “made significant progress in combating financial crime.”