Jordan Fails to Meet International Anti-Money Laundering and Combatting Financing of Terrorism Standards
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A recent report by the Financial Action Task Force (FATF) has criticized Jordan for its lack of progress in combating money laundering and financing of terrorism. The country’s financial sector is vulnerable to these criminal activities, which can lead to corruption, instability, and even national security threats.
Areas of Concern
The FATF report highlights several areas where Jordan needs to improve its anti-money laundering and combatting the financing of terrorism (AML/CFT) regulations:
- Deprivation of terrorist assets and instrumentalities: Jordan has failed to effectively freeze and seize assets linked to designated terrorists and entities.
- Consistency of measures with overall risk profile: The country’s AML/CFT measures do not align with its risk profile, leaving it vulnerable to money laundering and terrorism financing.
- Immediate outcome 11 (PF financial sanctions): Jordan has failed to implement targeted financial sanctions against individuals and entities involved in proliferation financing and other terrorist activities.
Recommendations for Improvement
The FATF report recommends that the government take immediate action to address these issues, including:
- Implementing a risk-based approach to AML/CFT regulations
- Improving national cooperation and coordination between law enforcement agencies and financial institutions
- Strengthening money laundering offenses and confiscation measures
The Consequences of Non-Compliance
Jordan’s failure to meet international standards puts its reputation at risk and could lead to economic sanctions. The country must take immediate action to address these issues and demonstrate its commitment to combating money laundering and financing of terrorism.
Technical Compliance Annex
The FATF report provides a detailed annex outlining the technical compliance requirements for Jordan to meet international AML/CFT standards, including recommendations on:
- Confiscation and provisional measures
- Terrorist financing offenses
- Targeted financial sanctions
- Non-profit organizations
- Financial institution secrecy laws
- Customer due diligence
- Record-keeping
- Politically exposed persons
Jordan must carefully review this annex and take immediate action to address these technical compliance requirements.
Conclusion
The FATF report provides a clear call to action for Jordan to improve its AML/CFT regulations. The country must take these recommendations seriously and work to address the vulnerabilities in its financial sector. The economy and reputation of Jordan depend on it.