EU votes to remove UAE from money laundering watchlist: The European Union voted in favor of removing the UAE from its list of high-risk countries for money laundering and terrorism financing, according to a statement. The decision follows a vote by the European Parliament, which endorsed a proposal from the European Commission in June, and will come into force in the coming weeks after publication in the official journal, provided that member states don’t raise an objection.

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Background: A previous attempt to remove the UAE from the list last year was blocked by EU lawmakers. At Davos in January, Economy Minister Abdulla Bin Touq Al Marri criticized the EU for the move, citing its removal from the Financial Action Task Force’s “gray list” last February, and said diplomatic efforts to reverse the designation were ongoing.

The move comes a few months after the EU and the UAE launched trade talks, expected to conclude within three to six months, and will help ease negotiations, the Financial Times reports, citing sources as saying that the issue was an obstacle in trade talks thus far.

This is very welcome news for businesses and investors: The removal will mean easier capital flows between the two regions, and potentially lower compliance costs for Wall Street banks in the UAE, Bloomberg reports.

Officials also showed their approval: “We look forward to unlocking the full potential of the UAE-EU partnership, fostering closer cooperation, enhanced prosperity and shared security for our regions and peoples,” State Minister Ahmed Ali Al Sayegh said, according to state news agency Wam.

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