Financial Crime World

Jordan’s Anti-Money Laundering Framework: A Country-by-Country Breakdown

In an effort to combat money laundering and terrorist financing, Jordan has implemented various anti-money laundering (AML) measures. But how effective are these efforts? This article provides a breakdown of the country’s compliance with the Financial Action Task Force (FATF) Recommendations.

Key Areas of Strength and Weakness

The FATF’s Mutual Evaluation Report for Jordan in 2019 highlights both positive developments and areas that require improvement.

Areas of Compliance

  • Risk-Based Approach: Jordan is largely compliant with Recommendation R.1, which calls for assessing risk and applying a risk-based approach to AML/CFT measures.
  • Customer Due Diligence: The country has demonstrated a strong commitment to customer due diligence (R.10), record keeping (R.11), and internal controls and foreign branches and subsidiaries (R.18).
  • Financial Intelligence Unit: Jordan has made significant progress in establishing a financial intelligence unit (R.29) and providing guidance and feedback to financial institutions (R.34).

Areas for Improvement

  • National Cooperation and Coordination: Jordan’s national cooperation and coordination (R.2) are limited, while its money laundering offence (R.3) lacks sufficient penalties.
  • Confiscation and Provisional Measures: The country’s confiscation and provisional measures (R.4) do not fully align with international standards.
  • Targeted Financial Sanctions: Jordan’s implementation of targeted financial sanctions related to terrorism and terrorist financing (R.6) is partially compliant, while its implementation of targeted financial sanctions related to proliferation (R.7) is non-compliant.

Additional Concerns

  • Financial Institution Secrecy Laws: Jordan’s financial institution secrecy laws (R.9) are still largely compliant.
  • Regulation and Supervision: The country’s regulation and supervision of financial institutions (R.26) require further strengthening.
  • Transparency and Beneficial Ownership: Transparency and beneficial ownership of legal persons (R.24) and legal arrangements (R.25) are partially compliant.

Conclusion

While Jordan has made notable strides in implementing AML/CFT measures, there are areas that require further attention and improvement. As the country continues to work towards strengthening its anti-money laundering framework, it will be important to address these deficiencies and ensure a robust system for combating money laundering and terrorist financing.