Jordan Adopts Risk-Based Approach to Anti-Money Laundering Efforts
International Financial Watchdogs Praise Jordan’s AML/CFT Efforts
A recent evaluation by international financial watchdogs has praised Jordan’s efforts to combat money laundering and terrorist financing, highlighting its commitment to a risk-based approach. The country received high ratings in several areas, including assessing risk and applying a risk-based approach, national cooperation and coordination, and targeted financial sanctions.
Key Strengths of Jordan’s AML/CFT Regime
- Risk-Based Approach: Jordan’s risk-based approach to anti-money laundering and combating the financing of terrorism (AML/CFT) has been recognized as a key strength. The country has a robust framework for identifying and mitigating risks associated with money laundering and terrorist financing.
- International Cooperation: Jordan has been praised for its cooperation with international partners, including sharing information and best practices to combat financial crime.
- Targeted Financial Sanctions: The country’s efforts to implement targeted financial sanctions against individuals and entities involved in terrorism and terrorist financing have also been recognized as a strength.
Areas for Improvement
- Regulation and Supervision of Financial Institutions: Jordan needs to improve its regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs).
- Powers of Supervisors: The country was found to be partially compliant in this area, indicating that there is room for improvement.
- Financial Intelligence Units: Jordan’s financial intelligence units were also found to be partially compliant, highlighting the need for further development.
FATF Evaluation and Future Reforms
The Financial Action Task Force (FATF) evaluation provides a comprehensive assessment of Jordan’s AML/CFT regime, highlighting both strengths and weaknesses. The government is expected to use this evaluation as a catalyst for further reform and improvement efforts. In recent years, Jordan has made significant strides in strengthening its AML/CFT framework, including implementing new regulations and laws aimed at combating money laundering and terrorist financing.
Conclusion
The FATF evaluation is seen as a critical tool for assessing the effectiveness of anti-money laundering and combating the financing of terrorism efforts around the world. It provides countries with a roadmap for improvement and helps to promote global cooperation in the fight against financial crime.