Financial Crime World

Financial Crime Risks Lurk in Jordan, Experts Warn

The Hashemite Kingdom of Jordan has been facing growing concerns over its Anti-Money Laundering (AML) and Combating Terrorism Financing (CFT) regime. The Financial Action Task Force (FATF), a global organization that sets standards for combating financial crime, is evaluating the country’s efforts to combat financial crime.

Shortcomings in AML/CFT Regime

The evaluation, based on the FATF’s Forty Recommendations 2003 and Nine Special Recommendations on Terrorism Financing 2001, has highlighted significant shortcomings in Jordan’s AML/CFT regime. These deficiencies create a fertile ground for money laundering and terrorist financing activities, putting not only Jordan but also the international financial system at risk.

Risks to the Global Financial System

  • Money laundering and terrorist financing activities can have devastating effects on the global economy
  • Failure to address these issues can lead to instability in the financial system

New Procedures to Address Deficiencies

The FATF has adopted new procedures to identify and work with jurisdictions like Jordan that have significant deficiencies in their AML/CFT regime. These procedures aim to protect the global financial system from ML/FT risks.

Review Process Under Scrutiny

  • The International Cooperation Review Group (ICRG) will manage these procedures
  • The review process will scrutinize Jordan’s efforts to address its AML/CFT shortcomings and implement corrective measures

Call for Enhanced Cooperation

Jordanian authorities must take swift action to rectify the identified deficiencies. Failure to do so may result in stricter sanctions and increased scrutiny from the international community.

Recommendations

  • Enhance cooperation between Jordan and the FATF
  • Implement a robust AML/CFT regime that safeguards the country’s financial system

The Future of Jordan’s AML/CFT Regime

As the situation continues to unfold, it remains to be seen whether Jordan will take the necessary steps to address its AML/CFT shortcomings and minimize the risks associated with financial crime. Only time will tell if the kingdom can effectively combat these threats and protect its citizens’ financial interests.