Jordan’s Struggle with Terrorism Financing Laws: A Mixed Bag of Compliance

The Financial Action Task Force (FATF) has released its latest assessment of Jordan’s efforts to combat terrorism financing, revealing a mixed bag of compliance. While the country excelled in some areas, it fell short in others, requiring significant improvement.

Risk Assessment and National Cooperation

• Jordan received a “largely compliant” rating for assessing risk and applying a risk-based approach.
• However, its implementation of national cooperation and coordination measures earned only a “partially compliant” rating. This highlights the need for improved communication and collaboration among various stakeholders.

Confiscation and Provisional Measures

• Jordan struggled to implement effective confiscation and provisional measures, receiving a “non-compliant” rating.
• The country’s laws regarding targeted financial sanctions related to terrorism and terrorist financing also require improvement.

Transparency and Beneficial Ownership

• Jordan received a “non-compliant” rating for its laws regarding the transparency and beneficial ownership of legal persons and arrangements. This is an area that requires urgent attention to prevent financial crimes.

Positive Developments

• Jordan has made significant progress in implementing measures related to money laundering, customer due diligence, record keeping, and reporting of suspicious transactions.
• The country’s internal controls and foreign branches and subsidiaries regulations still need improvement, but the efforts are a step in the right direction.

Financial Intelligence Units and Supervisory Powers

• Jordan’s financial intelligence units have received praise for their efforts, but the powers of supervisors and law enforcement and investigative authorities require further strengthening to effectively combat terrorism financing.

Future Expectations

• Jordan is expected to make significant improvements in the coming years as it continues to address its shortcomings.
• The country will continue to face scrutiny from international organizations and partners as it works to combat terrorism financing and money laundering.