Financial Crime World

Jordan Strengthens AML CFT Policies and Procedures Amid Global Crackdown on Financial Crime

Combating Money Laundering and Terrorist Financing in Jordan

As part of its efforts to combat money laundering and terrorist financing, Jordan has implemented robust Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) policies and procedures. The country’s regulatory bodies work together to ensure that AML/CFT regulations are effectively enforced, preventing financial crimes from taking root.

The Jordan Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU)

At the forefront of this effort is the Jordan Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU), a dedicated unit responsible for implementing AML and CTF measures. AMLU plays a crucial role in coordinating efforts to combat money laundering and terrorist financing, working closely with international organizations and other stakeholders.

Progress and Challenges

The Financial Action Task Force’s (MENAFATF) Mutual Evaluation Report provides valuable insights into Jordan’s AML/CFT regulatory framework and its compliance with international standards. According to the report, Jordan has made significant progress in strengthening its AML/CFT regime, but still faces challenges in implementing effective measures to prevent money laundering and terrorist financing.

Regulatory Departments Contributing to AML Compliance

Several regulatory departments within Jordan contribute to AML compliance:

  • Central Bank of Jordan: Oversees the country’s financial sector and has implemented strict regulations to ensure that financial institutions adhere to AML/CFT obligations, including enhanced due diligence for Politically Exposed Persons (PEPs).
  • Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021: Repealed and replaced the previous law, introducing a stronger oversight model and reinforced regulatory measures.

Key Provisions

The law defines money laundering as any action that conceals or misrepresents the true nature, source, location, or method of disposal of funds. Reporting entities, including banks and financial institutions, are required to:

  • Implement comprehensive AML/CFT programs
  • Maintain records of customer identification and transaction data for a specified period
  • Report suspicious activities to the Financial Intelligence Unit (FIU) or relevant authorities

Penalties for Non-Compliance

The law outlines penalties for non-compliance, including fines, sanctions, or criminal charges against individuals or entities that fail to adhere to AML/CFT obligations.

Conclusion

Jordan’s commitment to strengthening its AML/CFT regime is part of its efforts to combat financial crime and maintain the integrity of its financial sector. By implementing robust policies and procedures, Jordan aims to prevent financial crimes from taking root and ensure a safe and secure financial environment for its citizens.