Financial Crime World

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Financial Crimes Prevention in Jordan: An Overview of the AML/CFT Law

Jordan has taken a significant step towards preventing financial crimes with the enactment of the Anti-Money Laundering and Counter Terrorist Financing Law No. (20) of 2021, which replaced its predecessor law from 2007. The new law introduces a more robust and comprehensive framework for anti-money laundering (AML) and countering terrorist financing (CFT), reflecting global best practices.

What is Money Laundering?

According to Article 3 of the AML/CFT Law, money laundering refers to any activity that involves:

  • Concealing or misrepresenting the source, nature, location, disposal mechanism, transaction record, property in, or any other rights attached to proceeds of criminal activities
  • Earning, using, managing, investing, or possessing such moneys

What is Terrorist Financing?

According to Article 4 of the AML/CFT Law, terrorist financing refers to:

  • Providing or collecting funds with the knowledge that they will be used to commit an act of terror by a terrorist or terrorist organization
  • Intentionally contributing to or aiding in committing the crime
  • Financing travel for persons to countries other than their residence or nationality for purposes of committing acts of terror
  • Contributing to committing any financing of terrorism crimes

Notification Obligations

The AML/CFT Law has introduced new notification obligations for entities subject to its scope. Specifically:

  • Article 14 of the law revises the classification of entities that are required to report suspicious transactions to the AML/CFT Unit
  • The law prohibits disclosure of reports submitted to the unit, except in cases where disclosure is necessary for commercial or legal purposes

Concluding Remarks

The AML/CFT Law represents a significant improvement over its predecessor, with more detailed and specific provisions aimed at capturing financial crimes and reporting suspicious transactions. The law’s implementation will require increased scrutiny and monitoring of financial activity by authorities, including the Central Bank of Jordan, the Jordanian Securities Commission, and other relevant bodies.

If you need further information on the AML/CFT Law or advice on financial agreements and transactions, please contact our Banking and Finance team at Al Tamimi & Company.