Financial Crime World

Bank of Jordan Strengthens Anti-Money Laundering Procedures

Amman, JORDAN - Combating Money Laundering and Terrorist Financing

In a move aimed at combating money laundering and terrorist financing, the Bank of Jordan has implemented a robust Anti-Money Laundering (AML) program across its members, including foreign branches and affiliated companies.

Key Components of the AML Program

  • Group Policy: Approved by the board of directors, this policy outlines the bank’s commitment to preventing money laundering and terrorist financing.
  • Compliance Department: An independent department responsible for reviewing the AML policy, providing recommendations, and advising other executive departments on compliance with AML requirements.
  • Automated Systems and Programs: Implemented to aid in achieving the goals of the AML program.

Compliance Department Responsibilities

  • Reviewing the AML policy on an ongoing basis
  • Providing recommendations for further development of the program
  • Advising other executive departments on compliance with AML requirements
  • Submitting periodic reports to the board of directors

Additional Measures

  • Money Laundering Reporting Officer (MLRO) and Deputy MLRO: Appointed to report suspicious transactions related to money laundering, terrorist financing, or tax evasion to the Financial Intelligence Unit (FIU).
  • Know Your Customer (KYC) Program: A customer identification program in line with regulatory requirements.
  • Enhanced Customer Due Diligence Procedures: Based on a risk-based approach, these procedures aim to identify and mitigate potential risks.

Risk Management

  • Beneficial Owners and Ultimate Beneficial Owners: The bank identifies and monitors these individuals when establishing relationships and conducting transactions for clients.
  • Financial Transactions Monitoring: The bank continuously monitors financial transactions and customer activities using various channels to detect suspicious activity related to money laundering, terrorist financing, or tax evasion.

Continuous Improvement

  • Compliance Department Study: Conducted on products before launch, evaluating service delivery channels, assessing risks of exploitation for money laundering and terrorist financing operations, setting mitigating controls, and developing control procedures.
  • Whistleblower Channels: Employees can report any suspicion of money laundering, terrorism financing, or tax evasion through these channels.

Deterrent Measures

  • Established for non-compliance with AML program requirements, which are documented within the Code of Conduct.

Audit and Evaluation

  • Internal Audit Department: Conducts independent audits of the AML program and submits results and recommendations to the Audit Committee.
  • National Risk Assessment Process: The bank takes into consideration the results of this process when evaluating its AML risks.

Continuous Training

  • All Employees: Included in a continuous training program at all levels of management, including the board of directors, to further mature the AML program on an ongoing basis.
  • Documentation and Record-Keeping: In accordance with instructions from supervisory authorities.