Financial Crime World

ENFORCEMENT ACTIONS AGAINST FINANCIAL INSTITUTIONS IN JORDAN INTENSIFY

Strengthening Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Framework in Jordan

In a bid to enhance its AML/CTF framework, Jordan has taken enforcement actions against financial institutions in the country. This move is part of efforts to prevent money laundering and terrorist financing activities within the country’s financial system.

Regulatory Efforts

The Jordan Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU) has been working closely with regulatory bodies, including the Central Bank of Jordan and other relevant authorities, to ensure compliance with AML/CTF regulations. The Financial Action Task Force (MENAFATF) - Mutual Evaluation Report has also played a crucial role in identifying areas that require improvement.

Anti-Money Laundering Law No. 46 of 2007

Under the Anti-Money Laundering and Counter Terrorist Financing Law No. 46 of 2007, financial institutions are required to:

  • Establish anti-money laundering policies and procedures
  • Implement customer due diligence measures
  • Report suspicious transactions
  • Maintain records

Failure to comply with these regulations can result in fines, sanctions, or criminal charges.

Politically Exposed Persons (PEPs)

The law also defines who qualifies as a PEP, requiring financial institutions to apply enhanced due diligence measures when dealing with PEPs. This includes:

  • Conducting more thorough customer due diligence
  • Assessing the source of funds and wealth of PEP clients

Reporting Entities

Reporting entities, including banks, financial institutions, and designated non-financial businesses and professions (DNFBPs), are mandated to implement comprehensive AML/CFT programs that include:

  • Risk-based procedures for identifying and verifying customer identities
  • Record-keeping requirements
  • Reporting suspicious activities to the Financial Intelligence Unit (FIU) or relevant authorities

Government Commitment

The Jordanian government has reiterated its commitment to combating money laundering and terrorist financing, emphasizing the need for a robust regulatory framework that ensures the integrity of the country’s financial system.

Consequences of Non-Compliance

Failure to comply with AML/CFT regulations can have serious consequences for financial institutions, including:

  • Reputational damage
  • Loss of business
  • Even criminal charges

Financial institutions are advised to prioritize AML/CTF compliance and seek professional guidance if necessary.

Conclusion

As enforcement actions against financial institutions in Jordan continue to intensify, it remains to be seen how the country’s financial sector will adapt to the new regulatory landscape. One thing is certain, however - the need for a robust anti-money laundering and counter-terrorist financing framework has never been more pressing.