Jordan’s Fight Against Money Laundering Raises Concerns of Financial Inclusion

The Hashemite Kingdom of Jordan has come under scrutiny for its efforts to combat money laundering and terrorist financing, with experts warning that its measures may be hindering financial inclusion for many citizens.

The Evaluation

The country’s anti-money laundering (AML) and combating terrorism financing (CFT) regime was recently evaluated by the Financial Action Task Force (FATF), a global standard-setting body. The evaluation, conducted using the FATF’s AML/CTF Methodology 2004 and based on the Forty Recommendations 2003 and Nine Special Recommendations on Terrorism Financing 2001, revealed areas of concern for Jordan.

Concerns Raised

The country’s financial sector has been criticized for its lack of transparency and limited customer due diligence practices. The FATF has introduced new procedures to identify and work with jurisdictions that have significant deficiencies in their AML/CTF regime. The International Cooperation Review Group (ICRG), responsible for managing these procedures, aims to protect the international financial system from money laundering and terrorist financing risks while encouraging greater global compliance with international standards.

Balancing Efforts

Jordan’s struggle to balance its anti-money laundering efforts with the need for financial inclusion has raised concerns among experts. “While it is crucial to prevent money laundering and terrorist financing, Jordan must also ensure that its citizens have access to basic financial services,” said a financial analyst. “The country’s financial sector must strike a delicate balance between combating illicit activities and promoting economic growth.”

Next Steps

As Jordan continues to navigate this complex issue, the government has pledged to strengthen its AML/CTF regime and improve customer due diligence practices. However, some experts remain skeptical, warning that the country’s measures may have unintended consequences for its most vulnerable citizens.

• Financial inclusion is essential for economic development, and Jordan must take a more nuanced approach to prevent financial exclusion.
• The country’s financial sector must prioritize transparency and customer due diligence to ensure that its anti-money laundering efforts do not inadvertently exclude vulnerable populations.

The Global Implications

The debate over financial inclusion and money laundering in Jordan highlights the challenges faced by many countries in balancing their anti-money laundering efforts with the need for accessible financial services. As the global community continues to grapple with these issues, it remains to be seen how Jordan will strike a balance between its AML/CTF obligations and the needs of its citizens.

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