Financial Crime World

Jordanian Financial Crime Trends 2022: A Comprehensive Review of the Anti-Money Laundering and Counter Terrorist Financing Law

Amman, Jordan - The Hashemite Kingdom of Jordan’s new Anti-Money Laundering and Counter Terrorist Financing Law (AML/CFT Law) has introduced a more robust framework for combating financial crimes in the country. Enacted on September 16, 2021, the law replaces its predecessor, aiming to enhance the nation’s efforts against money laundering and terrorist financing.

Key Provisions of the AML/CFT Law

  • Money Laundering: The law defines money laundering as any person who knowingly engages in activities aimed at concealing or disguising the proceeds of criminal activities. The crime is deemed committed if the person transfers, transports, or uses such funds to misrepresent their source, or if they conceal or misrepresent the true nature of the funds.
  • Terrorist Financing: The law states that any person who directly or indirectly provides or collects funds for the purpose of committing an act of terror is guilty of the crime. The offense can be committed even if the intended act of terror does not occur.

Notification Obligations

  • Suspicious Transactions: Entities subject to the scope of the law, including lawyers, legal practitioners, and legal accountants engaging in financial activities, must report any suspicious transactions or activity to the AML/CFT Unit.
  • Disclosure Prohibitions: The law prohibits disclosure of reports submitted to the unit, except under specific circumstances, such as:
    • Disclosure to relevant executives or compliance officers
    • Disclosure to parties legally authorized to access such information

Increased Scrutiny and Regulation

To effectively counter money laundering and terrorist financing, authorities in Jordan must undertake a range of procedures, including:

  • Field and Office Inspections: Regular inspections of entities subject to the law’s scope.
  • Communication with Foreign Authorities: Cooperation with international partners to share information and best practices.
  • Retention of Reports and Statistics: Maintaining records on gathered information to track trends and identify suspicious activities.

Conclusion

Jordan has taken a crucial step towards enhancing its anti-money laundering and counter terrorist financing regime with the introduction of the AML/CFT Law. The law’s provisions aim to improve the nation’s ability to detect, prevent, and punish financial crimes, ultimately strengthening the country’s economic stability and security.