Financial Crime World

Financial Crime Risks in Jordan: FATF Recommendations Review

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The Financial Action Task Force (FATF) has assessed Jordan’s financial system to determine its level of compliance with international anti-money laundering and combating terrorist financing standards. The assessment, conducted in 2019, revealed a mixed picture, with some areas requiring improvement.

Compliance Status

According to the report, Jordan is partially compliant with several FATF recommendations:

  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Confiscation and provisional measures (R.4)
  • Regulations and supervision of financial institutions (R.26)
  • Powers of supervisors (R.27)

Areas Requiring Improvement

Jordan is non-compliant with the following FATF recommendations:

  • Transparency and beneficial ownership of legal persons (R.25)
  • DNFBPs: other measures (R.23)
  • Regulation and supervision of DNFBPs (R.28)
  • Financial intelligence units (R.29)

Concerns

The report also highlights concerns regarding Jordan’s lack of cooperation with:

  • International instruments (R.36)
  • Mutual legal assistance (R.37)
  • Extradition (R.39)

Additionally, the country needs to enhance its:

  • Guidance and feedback mechanisms (R.34)
  • Sanctions regime (R.35)

Recommendations

To prevent financial crime and protect the integrity of its financial system, Jordan’s financial sector should work towards addressing these gaps by:

  • Improving regulations and supervision of financial institutions
  • Enhancing cooperation with international instruments
  • Strengthening guidance and feedback mechanisms
  • Sanctions regime

Overall, while Jordan has made progress in implementing the FATF recommendations, there are still areas that require improvement. The country’s financial sector must continue to work towards addressing these gaps to prevent financial crime and protect the integrity of its financial system.