Review Process of the AML/CTF Regime in Jordan
The Financial Action Task Force (FATF), the global standard setting body for anti-money laundering and combating the financing of terrorism, adopted new procedures in June 2009 for identifying and working with jurisdictions with significant deficiencies in their AML/CFT regime. The objective of these procedures, which will be managed by the FATF’s International Cooperation Review Group (ICRG), is to protect the international financial system from money laundering and terrorist financing (ML/FT) risk and to encourage greater global compliance with the international standards for AML/CFT.
At the February 2010 FATF Plenary, FATF members agreed that Jordan warrants further review with respect to the international standards for AML/CFT, due to the result of the Mutual Evaluation of Jordan, where Jordan was identified as (non-complaint) and (partially complaint) in (14) out of (16) core and key recommendations.
Accordingly, the International Cooperation Review Group (ICRG) assigned to the Regional Review Group of Africa and the Middle East (RRG) to start the review process with Jordan in February 2010 throughout October 2010 during which the strategic deficiencies as identified in the Mutual Evaluation Report of the Kingdom, which was adopted by the MENAFATF in May 2009, were being addressed by the competent authorities in fighting money laundering and terrorist financing (Anti Money Laundering and Counter Terrorist Financing Unit, Central Bank of Jordan, Ministry of Justice, Ministry of Interior, Ministry of Social Development, Ministry of Finance, Companies Control Directorate, Insurance Commission and the Jordan Securities Commission). The measures undertaken can be summarized by the following:-
Amending the Anti Money Laundering and Counter Terrorist Financing Law criminalizing Terrorist Financing; extending the range of predicate offenses to include all offenses which are crimes (misdemeanors of felonies); granting the Unit greater independence; increasing the range of covered entities to include a broader range of financial institutions and non financial businesses and professions; introducing measures in relation to freezing, seizing and confiscation.
Issuing and/or amending AML/CTF instructions and guidelines to a range of financial institutions and DNFBPs (Banks, Money Exchange, Insurance, Securities, Financial Leasing, Real Estate, and Jewelry), by the competent authorities.
Adopting AML/CTF inspection manuals by the Central Bank of Jordan and the Insurance Commission.
Adopting instructions and formalizing the procedures for implementing the obligations under the UNSCRs 1267 (1999) and 1373 (2001).
Other measure where undertaken by other competent authorities to enhance the anti money laundering & counter terrorist financing regime in the Kingdom such as; the Ministry of Social Development (Amending the Societies Law), Companies Control Directorate (Adopting the Beneficiary Owner Declaration Form), Ministry of Justice (Adopting the Mutual Assistance Procedures, and endorsing the Palermo Convention), Customs Department (Activating the Cross Border Movable Declaration).
The Unit also took many measures addressing the deficiencies such as; enhancing cooperation at the national by signing Memorandum of Understanding and/or setting mechanisms to facilitate exchange of information with the Public Security Directorate, Land and Survey Department and the Civil Status and Passports Department; expanded the data base of the Unit to include international data bases, which will help identify the persons suspected to be related to money laundering and terrorist financing transactions; and in order to build the capacity of the different agencies involved in AML/CFT including judges and prosecutor and to raise awareness generally, (14) courses workshops and study visit were conducted in year 2010.
As a result, the FATF Plenary decided in October 2010 that Jordan has substantially addressed the strategic deficiencies identified in the FATF's Targeted Review and has determined that it will no longer monitor Jordan through the ICRG monitoring process.