Financial Crime World

Jordan’s AML/CFT Regime Under Scrutiny

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A recent evaluation has revealed shortcomings in Jordan’s anti-money laundering (AML) and combating the financing of terrorism (CFT) regime, prompting calls for urgent reforms.

Shortcomings Identified

The report assessed Jordan’s compliance with international standards and identified several areas that require immediate attention. These include:

  • Strengthening measures against proliferation financing
  • Improving the consistency of AML/CFT efforts
  • Enhancing international cooperation

Deprivation of TF Assets and Instrumentalities

The evaluation found that Jordan has not adequately addressed the issue of terrorist financing assets and instrumentalities, which are crucial for disrupting terrorist networks. The country’s financial intelligence unit (FIU) is also in need of strengthening to better identify and track suspicious transactions.

Consistency of Measures with Overall TF Risk Profile

The report highlighted inconsistencies between Jordan’s AML/CFT measures and its overall risk profile, which poses a threat to the country’s financial stability. To address this issue, the government must ensure that all relevant authorities are aligned and working together effectively.

International Cooperation

The evaluation emphasized the importance of international cooperation in combating money laundering and terrorist financing. Jordan was found to have limited its cooperation with other countries, which hampers efforts to track down and prosecute criminals.

Urgent Recommendations

In response to these findings, the report issued 24 recommendations for Jordan’s government to address the shortcomings identified. These include:

  • Strengthening AML/CFT regulations
  • Improving financial intelligence gathering
  • Enhancing international cooperation

Technical Compliance Annex

For more information on the recommendations issued by the report, please see the technical compliance annex below:

  • Recommendation 1: Assessing risks and applying a risk-based approach
  • Recommendation 2: National cooperation and coordination
  • Recommendation 3: Money laundering offense
  • Recommendation 4: Confiscation and provisional measures
  • Recommendation 5: Terrorist financing offense
  • Recommendation 6: Targeted financial sanctions related to terrorism and terrorist financing
  • Recommendation 7: Targeted financial sanctions related to proliferation
  • Recommendation 8: Non-profit organizations
  • Recommendation 9: Financial institution secrecy laws
  • Recommendation 10: Customer due diligence
  • Recommendation 11: Record-keeping
  • Recommendation 12: Politically exposed persons
  • Recommendation 13: Correspondent banking
  • Recommendation 14: Money or value transfer services
  • Recommendation 15: New technologies
  • Recommendation 16: Wire transfers
  • Recommendation 17: Reliance on third parties
  • Recommendation 18: Internal controls and foreign branches and subsidiaries
  • Recommendation 19: Higher-risk countries
  • Recommendation 20: Reporting of suspicious transactions
  • Recommendation 21: Tipping-off and confidentiality
  • Recommendation 22: DNFBPs: Customer due diligence
  • Recommendation 23: DNFBPs: Other measures
  • Recommendation 24: Transparency and beneficial ownership of legal persons