Investments via UAE to face more scrutiny after FATF grey list inclusion

FATF grey list inclusion hurts its attractiveness for investors

The United Arab Emirates (UAE) has become the latest addition to the grey list put out by the Financial Action Task Force, a global financial crime watchdog. The country’s inclusion may reduce its attractiveness as an investment hub for foreign inflows into India and raise the level of scrutiny by India’s financial regulators. 

The UAE has become a popular destination for companies and wealthy individuals seeking tax avoidance and is facing greater scrutiny amid global efforts to counter Russia’s invasion of Ukraine, according to reports.

“The announcement will dampen the attractiveness of the UAE for foreign portfolio investors (FPIs), who