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

Amidst a global fight against money laundering and terrorist financing, Jordan has revamped its anti-money laundering and counter-terrorist financing (AML/CFT) framework with the enactment of the Jordanian Anti-Money Laundering and Counter Terrorist Financing Law No. (20) of 2021.

The Crime of Money Laundering

Definition

Under Article 3 of the AML/CFT Law, money laundering is deemed committed by any person who knowingly:

  • Transfers or transports funds from criminal activities
  • Conceals or misrepresents their source
  • Uses them for illegal purposes

Liability

The law also criminalizes aiding, abetting, or attempting to commit these offenses.

The Crime of Terrorist Financing

Definition

Article 4 of the AML/CFT Law defines terrorist financing as providing or collecting funds with knowledge that they will be used to finance terrorism. This includes:

  • Directly or indirectly providing funds
  • Intentionally contributing to or aiding in committing terrorist financing crimes
  • Financing travel for individuals to commit acts of terror

Notification Obligations

Revised Classification

The AML/CFT Law revises the classification of entities subject to anti-money laundering and counter-terrorist financing obligations. Notably, it excludes insurance companies from the scope of regulated entities, as their regulatory function has been transferred to the Central Bank of Jordan.

Exceptions

The law also introduces exceptions to the prohibition on disclosing reports submitted to the AML/CFT Unit, allowing for disclosures to:

  • Executives
  • Compliance officers
  • Authorized parties

Enhanced Scrutiny

To combat financial crime, the AML/CFT Law obliges authorities to:

  • Conduct field and office inspections
  • Communicate with foreign authorities
  • Retain reports and statistics

These measures aim to increase scrutiny of financial activity and regulate Jordanian entities more effectively.

Conclusion

The new AML/CFT Law represents a significant step forward in Jordan’s efforts to combat money laundering and terrorist financing. By adopting a constructive approach that builds on the previous framework, the law enhances scrutiny, monitoring, and reporting of financial activity within its scope.