Jordan Urged to Adopt Best Practices for Anti-Money Laundering

The Hashemite Kingdom of Jordan has been evaluated on its anti-money laundering (AML) and combating terrorism financing (CFT) regime by experts who are calling for banks to adopt best practices to prevent financial crime. The evaluation was conducted using the Financial Action Task Force’s (FATF) Forty Recommendations 2003, Nine Special Recommendations on Terrorism Financing 2001, and AML/CFT Methodology 2004.

Areas of Improvement

The review process found that Jordan has made significant progress in strengthening its AML/CFT regime. However, there are still areas where improvement is needed. The FATF has adopted new procedures to identify and work with jurisdictions that have significant deficiencies in their AML/CFT regime, aimed at protecting the international financial system from money laundering and terrorist financing risk.

Recommendations for Jordanian Banks

Experts urge Jordanian banks to implement robust anti-money laundering measures, including:

• Enhanced customer due diligence
• Monitoring of transactions
• Reporting of suspicious activity

Additionally, the country’s financial regulatory bodies must ensure that all financial institutions comply with AML/CFT regulations.

Consequences of Non-Compliance

Failure to adopt best practices in AML/CFT can have serious consequences for Jordanian banks, including:

• Reputational damage
• Loss of customers
• Increased regulatory scrutiny

In contrast, adherence to international standards can help build trust in the financial system, attract foreign investment, and promote economic growth.

Conclusion

Jordan is urged to adopt best practices in AML/CFT to prevent financial crime and protect its reputation. By implementing robust anti-money laundering measures and ensuring compliance with regulations, Jordanian banks can mitigate risk and promote a stable financial environment.