Bank of Jordan Implements Stringent Anti-Money Laundering Regulations to Combat Financial Crimes

Introduction

The Bank of Jordan has implemented a comprehensive anti-money laundering (AML) program across its members, including foreign branches and affiliated companies, to combat money laundering, terrorist financing, and weapons proliferation risks on the national economy and international security.

AML Program Design and Implementation

• The AML program is designed to meet international standards and recommendations related to preventing the proliferation of weapons of mass destruction.
• The bank’s board of directors has approved a group policy on AML, which is circulated to all employees with different job duties at various levels of management.
• The Compliance Department, an independent unit reporting directly to the board of directors, plays a crucial role in verifying the fulfillment of AML program requirements.

Compliance Efforts

• To support its compliance efforts, the Bank of Jordan has allocated qualified and trained staff, implemented automated systems, and forecasted necessary budgets.
• The board of directors has granted employees of the Compliance Department the authority and access required to perform their duties effectively.
• The bank has appointed a Money Laundering Reporting Officer (MLRO) and Deputy MLRO to independently report any suspicious activities related to money laundering, terrorist financing, or tax evasion to the Financial Intelligence Unit (FIU).

Customer Identification and Due Diligence

• The Bank of Jordan has implemented Know-Your-Customer (KYC) customer identification programs in line with regulatory requirements.
• The bank applies KYC Customer Due Diligence Procedures based on a risk-based approach, including Enhanced Customer Due Diligence for high-risk clients.
• The bank adopts procedures to identify beneficial owners and ultimate beneficial owners when establishing relationships or conducting financial transactions for clients.

Risk Management and Monitoring

• Continuous monitoring of financial transactions and customer activities is implemented through various channels using a risk-based approach to detect suspicious activity.
• The Compliance Department reviews products before launch, evaluates service delivery channels, assesses risks of exploitation for money laundering and terrorist financing operations, sets mitigating controls, and develops control procedures.

Whistleblower Channels and Deterrent Measures

• Whistleblower channels are established for bank employees to report any suspicions of financial crimes.
• The Bank of Jordan has established deterrent measures for non-compliance with AML program requirements and documents this within its Code of Conduct.

Evaluation and Training

• The bank conducts periodic evaluations of money laundering and terrorist financing risks faced by its affiliates and foreign branches, including customer risks, product risks, service delivery channel risks, and geographic risks.
• Continuous training programs are developed for all employees at various levels of management, including the board of directors.

Record Keeping and Audit

• The Bank of Jordan documents and records its AML program activities in accordance with bank procedures and mechanisms designated for this purpose.
• An independent audit by the Internal Audit Department is conducted annually to review the AML program and submit results and recommendations to the Audit Committee emanating from the board of directors.