Financial Crime World

Jordan Embarks on Risk-Based Approach to Financial Crime Prevention

The Hashemite Kingdom of Jordan has taken a significant step in combating financial crime by conducting a comprehensive National Risk Assessment (NRA) report on money laundering and terrorist financing.

Comprehensive Analysis

The report, conducted with the assistance of International Monetary Fund (IMF) experts and methodology, provides a detailed analysis of the risks faced by the country. The risk-based approach is a crucial component of anti-money laundering and terrorist financing systems worldwide, and Jordan’s NRA report aims to identify the threats, vulnerabilities, and consequences associated with these crimes.

Identifying Key Components

The assessment process involved identifying three key components:

  • Threats: areas where Jordan faces high risks
  • Vulnerabilities: deficiencies in its anti-money laundering and terrorist financing systems
  • Consequences: potential outcomes of financial crime

The report highlights areas where Jordan faces high risks, which will require targeted measures to address these deficiencies.

Simplified Measures for Low-Risk Areas

Conversely, low-risk areas may be subject to simplified measures in compliance with Financial Action Task Force (FATF) recommendations.

Valuable Tool for Policy Decisions

The NRA report serves as a valuable tool for Jordanian authorities to develop a proactive strategy against financial crime. By recognizing the country’s vulnerabilities and prioritizing efforts, the government can ensure that resources are directed towards the most critical areas.

Strengthening the Financial Sector

The report’s findings will also inform policy decisions, enabling Jordan to strengthen its financial sector and protect its economy from illicit activities.

A Step Forward in Preventing Financial Crime

With this comprehensive assessment in place, Jordan is poised to take a significant step forward in preventing financial crime and maintaining its position as a stable and attractive destination for international investment.