Gulf Cooperation Council (GCC)

The Gulf Cooperation Council (GCC) is a group of six countries in the Middle East: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). It was created in 1981 to promote cooperation between these countries, including in areas like security, trade, and financial regulation.

What is the GCC's Role in Fighting Financial Crime?

The GCC works to strengthen anti-money laundering (AML) and counter-terrorist financing (CTF) across the region by:

• Working with FATF: The GCC is a member of the Financial Action Task Force (FATF), the international body that sets the rules for fighting money laundering.
• Partnering with MENAFATF: The GCC works closely with the Middle East and North Africa Financial Action Task Force (MENAFATF) to apply global AML rules in the region.
• Creating National AML Laws: Each GCC country has its own AML laws and regulators. For example, Saudi Arabia’s central bank enforces AML compliance in financial institutions.

Real-Life Example: UAE and the FATF Grey List

In March 2022, the UAE was added to the FATF Grey List. This list includes countries with weaknesses in their AML systems, but that have committed to fixing them. The FATF asked the UAE to improve how it fights money laundering and terrorist financing.

What Did the UAE Do?

• Updated its laws to make AML rules stronger.
• Created a national office to oversee AML and CTF efforts.
• Worked with other countries to track down criminals and improve cooperation.
• Improved how it monitors transactions and punished businesses that didn’t follow the rules.

What Was the Result?

In February 2024, the FATF announced that the UAE had made major improvements and removed it from the Grey List. This was an important step that helped restore trust in the UAE’s financial system and encouraged foreign investment.