Financial Crime World

Here is the rewritten article in Markdown format:

Financial Crime Reporting and Disclosure in Jordan: A Closer Look at the AML/CFT Law

In a bid to strengthen its anti-money laundering (AML) and counter terrorist financing (CFT) framework, Jordan has introduced significant reforms through the AML/CFT Law No. 20 of 2021.

Overview of the Law

The law aims to combat money laundering and terrorist financing by introducing a more robust and comprehensive regulatory framework that reflects global best practices in AML/CFT. The law defines money laundering as the transfer or concealment of criminal proceeds, while terrorist financing is deemed committed by anyone providing funds to a terrorist organization or individual with knowledge that such funds will be used to commit an act of terror.

Key Provisions

  • Broader Scope: The law does not require conviction for underlying crimes, broadening the scope of the offense and emphasizing the importance of preventing financial crimes.
  • New Notification Obligations: Article 14 revises the classification of entities subject to AML/CFT reporting, excluding those regulated by the Jordan Insurance Commission. Reporting is limited to lawyers, legal practitioners, and accountants arranging financial operations.
  • Disclosure Relaxation: The law permits disclosure of reports submitted to the AML/CFT Unit in certain circumstances, including to executives, compliance officers, and parties legally authorized to access such information.

Authorities’ Responsibilities

The law obligates authorities to undertake various procedures aimed at capturing financial crime and reporting it to the Unit. These include:

  • Field Inspections: Conducting regular inspections of entities subject to AML/CFT reporting.
  • Communication with Foreign Authorities: Collaborating with foreign authorities to share information and best practices in combating money laundering and terrorist financing.
  • Retention of Reports and Statistics: Retaining reports and statistics for a minimum period of five years.

Conclusion

While the AML/CFT Law does not completely overhaul Jordan’s AML/CFT framework, it builds upon and improves existing regulations. The law’s introduction is expected to enhance scrutiny, monitoring, and capture of money laundering and terrorist financing activity in the country.

Contact Us

For more information on financial agreements and transactions, please contact Al Tamimi & Company’s Banking and Finance team at: