Financial Crime World

Jordan Fails to Meet FATF Compliance Standards, Experts Say

Amman, Jordan - Despite efforts to strengthen its anti-money laundering and combatting financing of terrorism (AML/CFT) regime, Jordan has failed to meet several key requirements set by the Financial Action Task Force (FATF), a global body that sets standards for combating money laundering and terrorist financing.

FATF Evaluation Highlights Weaknesses

According to the Mutual Evaluation Report 2019, released by the FATF earlier this year, Jordan is considered “partially compliant” in several areas, including:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Targeting financial sanctions related to terrorism and terrorist financing

The country also failed to meet requirements on:

  • Confiscation and provisional measures
  • Transparency and beneficial ownership of legal persons

Challenges in Implementing AML/CFT Regulations

The report noted that Jordan has made significant progress in implementing AML/CFT regulations since the previous evaluation in 2010, but still faces challenges in several areas. For example:

  • Lack of effective mechanisms for confiscating assets and seizing proceeds of crime
  • Financial institutions lacking sufficient internal controls and foreign branches and subsidiaries
  • Regulators having limited powers to supervise entities

FATF’s Recommendations for Improvement

The FATF’s evaluation also highlighted several areas where Jordan needs to improve, including:

  • Customer due diligence
  • Record-keeping
  • Reliance on third parties

Jordan was found to be “non-compliant” in several areas, including:

  • Regulation and supervision of non-profit organizations
  • Designated non-financial businesses and professions (DNFBPs)

Committed to Improvement

Despite these challenges, Jordan has committed to implementing the FATF’s recommendations by 2023. The country’s financial regulator, the Jordan Securities Commission, has pledged to strengthen its supervisory powers and improve coordination with other regulatory bodies.

Enhancing International Cooperation

The FATF’s evaluation is seen as a key step in enhancing Jordan’s AML/CFT regime and strengthening its international cooperation with other countries. By implementing the recommended improvements, Jordan aims to demonstrate its commitment to combating money laundering and terrorist financing.