Financial Crime World

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Money Laundering Techniques in Jordan Exposed: Report Reveals Gaps in Implementation of International Standards

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Amman, Jordan - A recent report by the Financial Action Task Force (FATF) has shed light on the money laundering techniques used in Jordan, highlighting significant gaps in the country’s implementation of international anti-money laundering and combating the financing of terrorism (AML/CFT) standards.

Progress Made, But Shortcomings Remain

According to the report, Jordan has made progress in implementing some of the 40 FATF Recommendations. However, major shortcomings remain, particularly in areas such as:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Confiscation and provisional measures

The report found that Jordan’s legal framework for money laundering is inadequate, with several laws and regulations lacking clarity or effectiveness in criminalizing money laundering. Additionally, the country’s financial institution secrecy laws are considered non-compliant, making it difficult to share information with foreign authorities.

Weaknesses in Customer Due Diligence and Record Keeping

Jordan also fell short in implementing effective customer due diligence, record keeping, and internal controls, allowing for potential vulnerabilities in its financial system. The report noted that the country’s reliance on third parties and lack of transparency in beneficial ownership of legal persons and arrangements are major concerns.

Areas for Improvement

The FATF assessment highlighted several areas where Jordan needs to improve, including:

  • Regulation and supervision of financial institutions, DNFBPs (designated non-financial businesses and professions), and cash couriers
  • Effective powers for supervisors and law enforcement authorities

Risks and Consequences

Jordan’s poor performance in implementing international AML/CFT standards poses significant risks to its financial system and economy. The report warns that these weaknesses can facilitate money laundering and terrorist financing, undermining national security and stability.

Response and Support

In response to the findings, Jordan has committed to addressing the gaps and implementing necessary reforms to improve its AML/CFT framework. International partners have pledged support to help the country strengthen its anti-money laundering efforts.

Full Report Available

The full report is available on the FATF website, providing a detailed assessment of Jordan’s implementation of the 40 Recommendations. The report serves as a wake-up call for Jordan to take immediate action to address these weaknesses and ensure the integrity of its financial system.