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Jordan Unveils National Financial Inclusion Strategy to Boost Economic Growth

Amman, Jordan - The government of Jordan has launched a comprehensive National Financial Inclusion Strategy (NFIS) aimed at increasing financial inclusion and promoting economic growth in the country. The strategy targets specific vulnerable groups, including the bottom 40% of households, women, youth, and refugees.

Goals and Targets

According to the NFIS, the government aims to increase the level of financial inclusion from 24.6% to 36.6% by 2020, with a reduction in the gender gap from 53% to 35%.

Key Initiatives

Microfinance

  • Develop the financial and human capacities of microfinance institutions (MFIs) to enhance product development and outreach.
  • Increase awareness and financial capabilities among microfinance clients.

Digital Financial Services (DFS)

  • Expand DFS coverage, provide comprehensive financial services, and enhance payment system safety and integrity.

Small and Medium-Sized Enterprise Finance

  • Increase the share of financing provided by banks and MFIs to micro, small, and medium-sized enterprises from 8.5% to 15% by 2020.

Enablers

Laws, Regulations, Instructions

  • Promote account opening for priority segments.
  • Provide tax incentives for priority businesses.
  • Implement credit information sharing.
  • Establish a movable asset registry.

Financial Consumer Protection (FCP)

  • Implement a legal and regulatory framework for FCP based on principles of:
    • Fair treatment
    • Transparency
    • Responsible finance
    • Data privacy
    • Redress

Financial Capabilities

  • Promote financial education for schools, target groups, and the public.

Next Steps

Developing an Action Plan

  • A detailed action plan will be developed by the Financial Inclusion Technical Committee (FITC) and working groups to specify actions to achieve goals and targets.

Monitoring and Evaluation

  • The Central Bank of Jordan’s Financial Inclusion unit will conduct biannual monitoring and evaluation, including:
    • Data collection
    • Key performance indicator analysis
    • Reporting to ensure strategic direction

The NFIS is expected to have a positive impact on the economy by increasing financial inclusion, promoting economic growth, and reducing poverty.