Financial Crime World

Jordan’s Financial Sector Faces Corruption and Crime Concerns, Evaluation Reveals

A recent evaluation of Jordan’s financial sector by the Financial Action Task Force (FATF) has raised concerns over its vulnerability to corruption and crime. The report assesses the country’s implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Partial Compliance with FATF Recommendations

According to the evaluation, Jordan is only partially compliant with several FATF recommendations, including:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Confiscation and provisional measures

The country has also been criticized for lacking effective laws and regulations regarding: + Financial institution secrecy + Customer due diligence + Record keeping

Exposed Risks in Jordan’s Financial Sector

The report highlights that Jordan’s financial sector is exposed to various risks, including:

  • Lack of transparency in beneficial ownership of legal persons and arrangements
  • Inadequate regulation and supervision of:
    • Financial institutions
    • Designated non-financial businesses and professions (DNFBPs)

Insufficient Measures to Prevent Terrorist Financing

The evaluation notes that Jordan has not effectively implemented measures to prevent terrorist financing, including:

  • Targeted financial sanctions related to terrorism and terrorist financing
  • Laws and regulations regarding money laundering and terrorist financing offenses

Call for Immediate Action

The report concludes that Jordan needs to take immediate action to address these concerns and implement effective AML/CFT measures to prevent the misuse of its financial system for criminal activities. The country’s authorities have been urged to:

  • Strengthen regulation and supervision of:
    • Financial institutions
    • DNFBPs
    • Other sectors vulnerable to money laundering and terrorist financing

Implications for Jordan’s Financial Sector

The evaluation has significant implications for Jordan’s financial sector, as it may impact the country’s ability to access international financial services and attract foreign investment. It also highlights the need for greater transparency and cooperation with international partners to combat corruption and crime.

Response from Jordanian Authorities

In response to the report’s findings, Jordan’s authorities have announced plans to:

  • Strengthen their AML/CFT regime
  • Implement additional measures to prevent money laundering and terrorist financing
  • Increase transparency in its financial sector
  • Improve cooperation with international partners