The Financial Action Task Force (FATF) earlier this month ’grey-listed’ the United Arab Emirates (UAE). The Mar. 4 decision is significant as it means the Paris-based intergovernmental organization, set up to tackle money laundering and terrorism, is putting the wealthy Gulf Arab state on a global watch list. Indeed, the UAE is coming under greater monitoring due to its “strategic deficiencies” in curbing illicit financial activities.

For years, various transparency advocates have accused the UAE of turning a blind eye to dubious financial transactions. In 2020, the FATF released a report calling on the country to make “fundamental and major improvements.” In 2017, the European Union added the country to its blacklist of “non-cooperative jurisdictions for tax purposes"...