Jordan’s Financial Institutions Face Scrutiny Over Anti-Corruption Policies
Recent Evaluation Reveals Progress, but Room for Improvement
A recent evaluation conducted by the Financial Action Task Force (FATF) has assessed Jordan’s compliance with international standards for preventing money laundering and terrorist financing. The Mutual Evaluation Report 2019 evaluated Jordan’s financial institutions’ anti-corruption policies and found that while significant progress has been made, there is still room for improvement in certain areas.
National Cooperation and Coordination
The report highlighted the need for improvement in national cooperation and coordination between different authorities. While Jordan has implemented a risk-based approach to assessing and mitigating risks associated with financial transactions, further efforts are required to strengthen national cooperation and coordination.
Laws and Regulations
Jordan has made progress in criminalizing money laundering and terrorist financing offenses, but there is still a need for improvement in confiscation and provisional measures. Additionally, stricter rules are needed for non-profit organizations to prevent the misuse of funds.
- Criminalization of money laundering and terrorist financing offenses
- Confiscation and provisional measures require strengthening
- Stricter rules required for non-profit organizations
Financial Sanctions and Customer Due Diligence
Jordan’s financial institutions have implemented targeted financial sanctions related to terrorism and terrorist financing, as well as proliferation. However, there is still a need for improvement in the areas of:
- Politically exposed persons
- Correspondent banking
- Money or value transfer services
Technology and Internal Controls
The report noted that Jordan’s financial institutions have implemented new technologies to combat money laundering and terrorist financing. Wire transfers are subject to strict controls, but there is still room for improvement in reliance on third parties.
- Implementation of new technologies to combat money laundering and terrorist financing
- Strict controls over wire transfers
- Room for improvement in reliance on third parties
Regulation and Supervision
Jordan has made progress in implementing transparency and beneficial ownership requirements for legal persons and arrangements. However, there is still a need for improvement in the powers of supervisors and law enforcement authorities.
- Transparency and beneficial ownership requirements for legal persons and arrangements
- Powers of supervisors and law enforcement authorities require strengthening
International Cooperation and Sanctions
Jordan has committed to implementing sanctions and international instruments to combat money laundering and terrorist financing. Mutual legal assistance, extradition, and other forms of international cooperation are also subject to strict controls.
- Implementation of sanctions and international instruments
- Strict controls over mutual legal assistance, extradition, and other forms of international cooperation
Conclusion
While Jordan’s financial institutions have made significant progress in implementing anti-corruption policies, there is still a need for improvement in certain areas. The country must continue to work towards strengthening its anti-money laundering and counter-terrorism financing regime to meet the high standards set by the FATF.