Financial Crime World

Jordan Moves to Enhance Beneficial Ownership Transparency Amid Global Momentum

The Jordanian Council of Ministers has approved an instruction aimed at enhancing transparency in beneficial ownership, a move expected to boost corporate accountability and help curb illicit financial flows.

New Instruction Requires Disclosure of Ultimate Beneficial Owners

According to the new instruction No. (62) of 2022, companies are required to disclose information on their ultimate beneficial owners, defined as natural persons who have the right to share income or assets, or control company activities.

Global Momentum Builds Around Beneficial Ownership Transparency

The move comes amid growing global momentum on beneficial ownership transparency, with over 100 countries committed to implementing reforms. International organizations such as:

  • Financial Action Task Force (FATF)
  • G7
  • G20
  • International Monetary Fund (IMF)
  • UN
  • World Bank

have voiced support for the measure.

Why Beneficial Ownership Transparency Matters

Beneficial ownership transparency has become a crucial tool in combating:

  • Corruption
  • Organized crime
  • Tax evasion

It helps identify those who control companies and make decisions, allowing authorities to hold them accountable. The instruction is expected to increase transparency in company ownership, making it easier for law enforcement agencies and the public to access information on company owners.

Challenges Remain for Some Countries

However, some countries still face challenges in accessing this information due to lack of reforms or poor implementation.

Impact on Shell Companies

Experts say that shell companies, which are often used to conceal beneficial ownership, will be among those affected by the new instruction. Shell companies can make it difficult for authorities to track the flow of stolen assets and identify their anonymous owners.

Jordan’s Move: A Step Towards Enhancing Transparency and Accountability

Jordan’s move is seen as a step in the right direction towards enhancing transparency and accountability in business operations. The country joins a growing list of jurisdictions that have committed to implementing reforms aimed at increasing beneficial ownership transparency.