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AML Best Practices for Banks in Jordan: A Guide to Compliance

As part of its efforts to combat money laundering and terrorist financing, Jordan has implemented a range of anti-money laundering (AML) regulations and guidelines for banks operating in the country. In this guide, we will outline the key best practices that banks should follow to ensure compliance with these regulations.

Regulatory Framework

The Anti-Money Laundering and Counter Terrorist Financing Instructions of Entities Providing Postal Services No. 1/2012 sets out the minimum requirements for AML/CFT compliance by banks in Jordan. Similarly, the Anti Money Laundering and Counter Terrorist Financing Instruction No. 14-2018 of Banks outlines specific guidelines for banks to follow.

Key Best Practices

To ensure compliance with these regulations, banks in Jordan should:

  • Establish effective AML/CFT policies and procedures: Regularly review and update these policies and procedures to ensure they remain effective.
  • Identify and verify customer identities: Verify the identity of customers, including Politically Exposed Persons (PEPs) and high-risk individuals.
  • Conduct ongoing monitoring of customer activities: Detect suspicious transactions by regularly reviewing customer activity.
  • Report all suspicious transactions to the relevant authorities: Report any suspicious transactions immediately to the relevant authorities.
  • Maintain accurate and detailed records of all transactions and customer dealings: Keep accurate and detailed records of all transactions and customer dealings.

Guidelines for Specific Industries

In addition to these general best practices, banks operating in specific industries such as securities, insurance, and money exchange should also be aware of industry-specific guidelines. For example:

  • The Guidance Manual for Anti-Money Laundering and Counter Terrorism Financing related to Banks: Provides specific guidance on AML/CFT compliance by banks.
  • The Guidance Manual for Anti-Money Laundering and Counter Terrorism Financing related to Money Exchange Companies: Outlines the key AML/CFT requirements for money exchange companies.

Conclusion

To ensure compliance with Jordan’s anti-money laundering regulations, banks in the country must:

  • Establish effective AML/CFT policies and procedures
  • Identify and verify customer identities
  • Conduct ongoing monitoring of customer activities
  • Report suspicious transactions
  • Maintain accurate records

By following these best practices, banks can help to prevent money laundering and terrorist financing, while also maintaining their reputation and avoiding regulatory penalties.