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 UNCAC, implementing various anti-corruption laws, and showing a growing willingness to investigate public corruption. Despite these efforts, nepotism and personal connections continue to influence economic interests, and the enforcement of anti-corruption laws remains inconsistent, with high-ranking officials rarely facing prosecution. While U.S. businesses do not view corruption as a significant barrier to investment, the prevalence of middlemen and bureaucratic hurdles still complicates the business environment.

Jordan's economy is characterized by a welcoming stance towards foreign investment, although the implementation of investment promotion policies can be inconsistent. Key challenges include high electricity costs and water scarcity, yet opportunities exist in sectors like technology and tourism, bolstered by a well-educated workforce and numerous free trade agreements. The government's Economic Modernization Vision aims to attract $60 billion in investments and create one million jobs over the next decade.

Jordan's investment climate is characterized by government support for foreign investment, although implementation of investment policies can be inconsistent. Despite challenges such as high utility costs and bureaucratic inefficiencies, Jordan offers significant opportunities for foreign investors, particularly in sectors like technology, renewable energy, and tourism, bolstered by its free trade agreements and a well-educated workforce.