Financial Crime World

Jordan’s Financial Sector Faces High Money Laundering Risks

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The Hashemite Kingdom of Jordan has been assessed as facing a “high” level of national money laundering risks, according to a recent report. With a country risk score of 4.1 out of 7.0, Jordan is considered one of the top middle-income economies in the world.

Threats from Illegally Acquired Assets

The report highlights that Jordan’s financial sector faces significant threats from illegally acquired assets, which need to be laundered through legitimate channels. The assessment found that the value of criminal proceeds resulting from crimes committed within the country was estimated to be around JD 941 million, or approximately 3.7% of GDP.

Top Crime Types Contributing to Money Laundering Risks

The top five crime types contributing to this figure were:

  • Tax evasion
  • Robbery/criminal theft
  • Theft
  • Trafficking in illicit drugs
  • Corruption and bribery

These crimes often generate proceeds in cash, which can be stored and used or converted into financial assets.

Real Estate Market’s Significance

The report also highlighted the importance of the real estate market in Jordan, which had a trading volume of around JD 5 billion in 2018, accounting for 14% of GDP. The sector is considered a significant contributor to money laundering risks, with around 2.8% of sales and purchases made through real estate offices.

Jewelry Sector’s Role

The report’s findings also highlighted the significance of the jewelry sector, which had total assets of around JD 128 million in 2018, with an estimated sales volume of JD 33.6 million.

Recommendations for Strengthened Efforts to Combat Money Laundering Risks

The report concluded that Jordan’s financial sector faces significant risks from money laundering, and called for strengthened efforts to combat these threats. It emphasized the need for:

  • Improved regulation and supervision of financial institutions
  • Enhanced international cooperation to prevent the flow of illegally acquired assets through the country’s borders

Key Statistics

  • Gross domestic product (GDP): JD 31.1 billion
  • Per capita GDP: JD 3,145
  • Total assets of regulated institutions: around JD 48,378 million
  • Number of regulated institutions: approximately 17,600
  • Trading volume of real estate market: around JD 5 billion in 2018

Source: [Insert source]