Financial Crime World

Jordan Launches Screening Program for Politically Exposed Persons (PEPs)

Introduction

The Government of Jordan has announced the implementation of a new program aimed at identifying and screening politically exposed persons (PEPs) in the country. This move comes in response to recommendations from the Financial Action Task Force (FATF), an international organization that sets global standards for combating money laundering and terrorist financing.

What are Politically Exposed Persons (PEPs)?

Experts define PEPs as individuals who hold prominent positions or have done so in the past, making them vulnerable to abuse for money laundering and other financial crimes. These individuals may include:

  • Heads of state or government
  • Senior politicians
  • High-ranking government officials
  • Judges and magistrates
  • Military personnel with senior ranks
  • Individuals who have held such positions in the past

The Jordanian Program

The new program in Jordan includes several key measures to prevent the misuse of financial systems by PEPs. These measures include:

  • Enhanced customer due diligence requirements
  • Use of external sources of information to determine whether an individual is a PEP
  • Guidance on the effective implementation of these measures, including the use of commercial and other databases to identify PEPs

However, officials stress that these databases are not sufficient to comply with the PEP requirements and that additional steps must be taken to ensure compliance.

Red Flags and Indicators

The program will also include a list of red flags and indicators that can be used to detect potential misuse of financial systems by PEPs. These red flags may include:

  • Use of corporate vehicles to obscure ownership
  • Inconsistencies between information provided by the PEP and publicly available information
  • Doing business with PEPs connected to high-risk countries or industries

Objectives of the Program

The program is aimed at preventing the laundering of illicit funds and other financial crimes. Officials believe that it will help to maintain Jordan’s reputation as a stable and secure country.

“We are committed to combating money laundering and terrorist financing, and this new program is an important step in that effort,” said a government spokesperson.

Conclusion

The launch of the PEP screening program in Jordan is a significant step towards enhancing the country’s anti-money laundering and counter-terrorism financing efforts. The program’s measures will help to prevent the misuse of financial systems by PEPs and maintain Jordan’s reputation as a stable and secure country.