Jordan Country Summary

FATF Status

Jordan is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 27 October 2023

The FATF welcomes Jordan’s significant progress in improving its AML/CFT regime. Jordan strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in October 2021 related to (1) completing and disseminating the ML/TF risk assessments of legal persons and virtual assets; (2) strengthening risk-based supervision and conducting training for FIs and DNFBPs; (3) maintaining comprehensive and updated basic and beneficial ownership information on legal persons; (4) pursuing money laundering investigations and prosecutions for predicate offences in line with its risk profile and strengthening the sanctioning and confiscation regime, including at the border; (5) implementing a legal and institutional framework for TFS; and (6) conducting risk-based monitoring of NPOs without disrupting legitimate NPO activities. Jordan is therefore no longer subject to the FATF’s increased monitoring process.

Jordan should continue to work with MENAFATF to sustain its improvements in its AML/CFT system.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Jordan was undertaken in 2022. According to that Evaluation, Jordan was deemed Compliant for 8 and Largely Compliant for 24 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 2 of the Effectiveness & Technical Compliance ratings.

Jordan has made strides in combating corruption by ratifying the UN Convention against Corruption and enacting various laws, yet personal connections still play a significant role in advancing economic interests. The country faces challenges with human trafficking, illicit trade, and financial crimes, while its judicial system struggles with inefficiencies and allegations of corruption. Despite these issues, U.S. businesses do not view corruption as a major barrier to investment, and Jordan's political stability is generally regarded as better than that of its neighbors.

Jordan's economy is characterized by a welcoming stance towards foreign investment, although implementation of investment promotion policies can be inconsistent. The country faces challenges such as high electricity costs and water scarcity, but it also offers significant opportunities, particularly in technology and tourism, supported by a well-educated workforce and numerous free trade agreements.

Jordan's investment climate is characterized by government support for foreign investment, although implementation of policies can be inconsistent, leading to challenges such as high electricity costs and water scarcity. The country offers significant opportunities for foreign investors, particularly in sectors like technology and tourism, bolstered by a well-educated workforce and numerous free trade agreements. However, restrictions exist in certain sectors, and foreign investors may face limitations on ownership and operational control.