Financial Crime World

Financial Crime Investigation Process in Jordan: A Comprehensive Review of the New Anti-Money Laundering and Counter Terrorist Financing Law

Jordan’s financial landscape has undergone significant developments with the enactment of the Anti-Money Laundering and Counter Terrorist Financing Law No. (20) of 2021, replacing its predecessor, the Anti-Money Laundering and Counter Terrorist Financing Law No. (46) of 2007 and its Amendments.

Definition of Money Laundering and Terrorism Financing

The AML/CFT Law defines money laundering as any person who, with knowledge that the moneys in question are proceeds of criminal activities, transfers or transports such moneys to misrepresent or conceal their illegitimate source. This includes concealing or misrepresenting the true nature, source, location, disposal mechanism, transaction record, property in, or any other rights attached to the moneys in question.

The law also focuses on financing terrorism, defining it as any person who directly or indirectly provides or collects funds, whether from a legitimate source, with knowledge that such funds shall be fully or partially used to commit an act of terror. This includes intentionally contributing to or aiding in committing the crime of financing terrorism.

Notification Obligations Under the AML/CFT Law

The law revises the classification of entities to which AML/CFT obligations apply, making it more specific and targeted. It also introduces exceptions for disclosure of reports submitted to the Anti-Money Laundering and Counter Terrorist Financing Unit (Unit), allowing for reasonable relaxation of confidentiality in certain circumstances.

The following authorities are obligated to undertake various procedures to capture financial crime and report it to the Unit:

  • The Central Bank of Jordan
  • The Jordanian Securities Commission
  • The Ministry of Industry, Trade and Supply
  • The Telecommunications Regulatory Commission

These entities must conduct:

  • Field and office inspections
  • Communication with foreign authorities that supervise financial crime
  • Retention of reports and statistics on information gathered pursuant to the AML/CFT Law

Conclusion

The new AML/CFT Law in Jordan is a significant development in the country’s fight against money laundering and terrorist financing. It introduces a more robust framework for anti-money laundering and countering terrorist financing, aligning with global standards.

The law’s revisions and exceptions aim to facilitate increased scrutiny of financial activity and stricter regulation of Jordanian entities.

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