Financial Crime World

Here is the rewritten article in Markdown format:

Financial Inclusion and Money Laundering in Jordan: A Growing Concern

Jordan, a country with a growing economy, has been struggling to balance financial inclusion with anti-money laundering efforts. The latest report by the Financial Action Task Force (FATF) highlights the challenges faced by Jordan in implementing its recommendations.

Key Challenges Identified by FATF

According to the FATF Mutual Evaluation 2019, Jordan scored low on several fronts, including:

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

The country was also found to be lacking in its efforts to regulate and supervise financial institutions, as well as its ability to share intelligence with international partners.

Gaps in Anti-Money Laundering Laws and Regulations

The report noted that while Jordan has made some progress in implementing anti-money laundering laws and regulations, there are still significant gaps that need to be addressed. For example:

  • The country’s laws do not provide for adequate penalties for money laundering offenses
  • Its financial intelligence unit is not adequately resourced or empowered

Inadequate Regulation of Non-Profit Organizations and Foreign Branches

Jordan’s efforts to regulate non-profit organizations and foreign branches and subsidiaries of domestic banks were found to be inadequate. The country also failed to implement effective measures to prevent the misuse of correspondent banking relationships and was lacking in its efforts to combat terrorist financing.

Recommendations for Improvement

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

  • Strengthening customer due diligence requirements
  • Enhancing record-keeping and reporting mechanisms
  • Increasing transparency and beneficial ownership requirements for legal persons and arrangements

Conclusion

While Jordan has made some progress in implementing anti-money laundering measures, the FATF report emphasizes that more needs to be done to address the risks posed by financial inclusion. The country’s authorities must take concrete steps to strengthen their regulatory framework and enhance international cooperation if they are to effectively combat money laundering and terrorist financing.