UAE Concerned EU’s Keeping It on Dirty-Money ‘Black List’

(Bloomberg) — The United Arab Emirates expressed concern about the European Union keeping it on a “black list” of countries with deficiencies in combating illicit money flows.

In an interview at the World Economic Forum in Davos, Switzerland, Economy Minister Abdulla bin Touq Al Marri said the UAE would also hold talks with the EU about the bloc’s labor requirements for nations it trades with.

“The question of the EU black list, this is a question for them,” he said. “I do not understand how the UAE is still on the black list.”

The UAE is making diplomatic efforts to resolve the situation, he said, without giving any indication of whether the EU’s stance is shifting.

The EU regularly assesses third countries’ efforts against money laundering and the financing of international terrorism and has yet to drop the UAE from its black list. That’s despite the Paris-based Financial Action Task Force — a global body — removing the UAE from its “gray list” last year.

“The UAE managed to get out of the gray list in record time, based on assessment and based on people who come on site and scrutinize your systems for weeks and months,” said Al Marri.

The UAE is also wary of an EU directive that will potentially penalize imports from countries that don’t allow for trade unions.

“You can’t dictate what other countries do with their labor systems and management,” he said. “What works in the UAE works.”

It is “really going to challenge” the oil and natural gas industries, he said.

The UAE, an OPEC member, ships little of its crude to Europe, according to data compiled by Bloomberg. But it is planning to export more of its liquefied natural gas there.

Qatar, one of the world’s biggest LNG producers, has voiced similar criticism about the EU’s climate directives and said they may result in less fuel being sent to the bloc.

The EU didn’t immediately respond to a request for comment on both issues.

Al Marri also reiterated that while the UAE has introduced corporate tax, it has no plans to start income taxes.

“There’s a lot of speculation on that,” he said. “It’s not on the table. It’s not in the rooms of discussions. It’s not being discussed in the meetings. It’s not coming anytime soon.”

–With assistance from Dinesh Nair and Jorge Valero.

(Updates more detail in second paragraph.)

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