Jordan’s Financial Compliance: A Review of Best Practices

The Jordan Mutual Evaluation 2019 has provided a comprehensive assessment of the country’s implementation of the Financial Action Task Force (FATF) Recommendations, highlighting both strengths and weaknesses in its financial compliance regime.

Mixed Picture Revealed

According to the report, Jordan’s assessment reveals a mixed picture, with some areas demonstrating significant progress while others require further improvement. The evaluation covers 40 key recommendations that are essential for combating money laundering, terrorist financing, and proliferation financing.

Areas of Strength

Assessing Risk and Applying a Risk-Based Approach (R.1) - Compliant: Jordan has demonstrated a strong understanding of risk assessment and applies a risk-based approach to its financial system.
National Cooperation and Coordination (R.2) - Largely Compliant: The report praises Jordan’s efforts to enhance national cooperation and coordination among various authorities, including law enforcement agencies and financial institutions.

Areas for Improvement

Confiscation and Provisional Measures (R.4) - Partially Compliant: While Jordan has taken steps to improve confiscation and provisional measures, there are still some limitations and inconsistencies in the application of these provisions.
Targeted Financial Sanctions Related to Proliferation (R.7) - Non-Compliant: Jordan’s implementation of targeted financial sanctions related to proliferation is found to be non-compliant, highlighting the need for urgent action.

Key Recommendations

Here are some key recommendations from the report:

Money Laundering Offence (R.3)

Strengthen criminal laws and procedures
Improve investigation and prosecution of money laundering cases

Terrorist Financing Offence (R.5)

Implement targeted financial sanctions and freeze assets linked to terrorism
Enhance cooperation with international partners to combat terrorist financing

Conclusion

The Jordan Mutual Evaluation 2019 provides valuable insights into the country’s efforts to combat money laundering, terrorist financing, and proliferation financing. The report serves as a roadmap for Jordan’s financial authorities, helping them identify areas that require improvement and implement best practices in financial compliance.