Jordan’s Financial System Fails to Combat Money Laundering and Terrorist Financing

A recent report by the international financial community has revealed significant shortcomings in Jordan’s efforts to combat money laundering (ML) and terrorist financing (TF). The country’s financial system is vulnerable to criminal activities, putting its economy and national security at risk.

Deprivation of TF Assets and Instrumentalities Falls Short

The report highlights that Jordan’s authorities have failed to effectively deprive terrorist organizations of their assets and instrumentalities. This has allowed terrorists to continue financing their activities, posing a threat to regional and global stability.

• The country’s inability to deprive terrorist organizations of their assets and instrumentalities allows them to continue financing their activities.
• This poses a significant threat to regional and global stability.

Consistency with Overall Risk Profile

The country’s measures to combat ML and TF are inconsistent with its overall risk profile. The report notes that Jordan’s authorities have not taken adequate steps to identify and assess the risks associated with money laundering and terrorist financing, leaving the financial system vulnerable to exploitation by criminals and terrorists.

• Jordan’s authorities have failed to take adequate steps to identify and assess the risks associated with ML and TF.
• This leaves the financial system vulnerable to exploitation by criminals and terrorists.

Financial Sanctions Fail to Effectively Target Proliferation Financing

The report criticizes Jordan’s implementation of financial sanctions related to proliferation financing, stating that they fail to effectively target this type of illegal activity. This has allowed countries to continue pursuing illicit nuclear and missile programs, posing a threat to international peace and security.

• Jordan’s implementation of financial sanctions related to proliferation financing is ineffective.
• This allows countries to continue pursuing illicit nuclear and missile programs, posing a threat to international peace and security.

International Cooperation Falls Short

Jordan’s efforts to cooperate with other countries to combat ML and TF have also been criticized in the report. The country’s authorities are urged to improve their provision of legal assistance, extradition, and mutual legal assistance (MLA) to other countries, as well as provide timely and effective cooperation in joint investigations.

• Jordan’s authorities must improve their provision of legal assistance, extradition, and MLA to other countries.
• They must also provide timely and effective cooperation in joint investigations.

Recommendations

The report provides 24 recommendations aimed at improving Jordan’s efforts to combat ML and TF. These include:

• Assessing risks and applying a risk-based approach
• Strengthening national cooperation and coordination
• Enhancing the country’s legal framework to criminalize money laundering and terrorist financing
• Improving the provision of legal assistance, extradition, and MLA to other countries
• Providing timely and effective cooperation in joint investigations

Jordan is urged to take immediate action to address these shortcomings and improve its financial system’s resilience against ML and TF. The international community will be watching closely to ensure that the country takes concrete steps to implement these recommendations and effectively combat money laundering and terrorist financing.