Financial Crime World

Jordan’s Banking Regulations Compliance Under Scrutiny as Regional Body Issues Mutual Evaluation Report

The Financial Action Task Force (MENAFATF) has released a report evaluating Jordan’s anti-money laundering (AML) and combating the financing of terrorism (CFT) framework, putting the country’s efforts under scrutiny.

Progress Made, but Room for Improvement

While Jordan has made significant progress in recent years, there are still areas where the country can improve its AML/CFT regime. The report highlights several key issues that need to be addressed, including:

  • Enhancing customer due diligence procedures
  • Improving reporting mechanisms
  • Increasing public awareness about the risks associated with money laundering and terrorist financing

Key Components of Jordan’s AML/CFT Efforts

At the heart of Jordan’s AML/CFT efforts is the Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU), a dedicated unit responsible for implementing and enforcing the country’s anti-money laundering laws. The AMLU works closely with the Financial Intelligence Unit (FIU) to:

  • Identify cases of money laundering and terrorist financing
  • Track suspicious transactions
  • Prosecute violators

Recommendations from the MENAFATF Report

The report highlights several areas where Jordan needs to improve its AML/CFT regime, including:

  • Strengthening the country’s financial intelligence unit to enable it to effectively analyze and disseminate financial information to law enforcement agencies
  • Improving the reporting mechanisms for suspicious transactions by financial institutions
  • Enhancing customer due diligence procedures

New Laws Aim to Strengthen Jordan’s AML/CFT Framework

In response to the MENAFATF report, Jordan has recently passed new laws aimed at strengthening its AML/CFT framework. The Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021 introduces tougher penalties for non-compliance and requires financial institutions to:

  • Conduct enhanced due diligence on politically exposed persons (PEPs)
  • Maintain comprehensive records of customer identification and transaction data
  • Report suspicious transactions in a timely manner

Experts Welcome Developments

Experts have welcomed the new laws, saying they are a significant step forward for Jordan in its fight against money laundering and terrorist financing. “Jordan is taking concrete steps to strengthen its AML/CFT regime, which will help to protect its financial system from abuse,” said an expert at Al Tamimi & Co, a leading law firm in the region.

Conclusion

While there are still areas where Jordan needs to improve its AML/CFT regime, the country’s recent efforts demonstrate its commitment to combating money laundering and terrorist financing. As the MENAFATF report notes, Jordan is making progress, but it needs to continue to strengthen its AML/CFT framework to meet international standards.