Financial Crime World

Jordan Enacts New Anti-Money Laundering and Counter-Terrorist Financing Law

The Hashemite Kingdom of Jordan has introduced a new anti-money laundering (AML) and counter-terrorism financing (CFT) law, aimed at strengthening the country’s regulatory framework to combat financial crimes. The AML/CFT Law No. 20 of 2021 replaces its predecessor, the Anti-Money Laundering and Counter-Terrorist Financing Law No. 46 of 2007 and its amendments.

Key Features of the New Law

  • Introduces a more comprehensive and robust oversight model, aligned with global best practices in AML/CFT
  • Expands the scope of entities subject to AML/CFT regulations
  • Increases reporting obligations
  • Enhances penalties for non-compliance

Definition of Money Laundering and Financing Terrorism

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

  • Knowingly transfers or transports funds obtained from criminal activities
  • Conceals their source
  • Aids individuals involved in such crimes

The law also criminalizes financing terrorism, defined as providing or collecting funds knowing they will be used to commit terrorist acts.

Scope of Entities Subject to AML/CFT Obligations

Article 14 of the AML/CFT Law revises the classification of entities subject to AML/CFT obligations, excluding:

  • Persons and companies supervised by the Jordan Insurance Commission
  • Lawyers, legal practitioners, and accountants performing financial services on behalf of others

Reporting Obligations

The law limits the scope of activities triggering AML/CFT reporting obligations to:

  • Lawyers, legal practitioners, and accountants performing financial services on behalf of others

Confidentiality and Disclosure

The law prohibits disclosure of reports submitted to the AML/CFT Unit, except in cases where such information is necessary for commercial or legal purposes, including disclosures to:

  • Executives
  • Compliance officers
  • Authorized parties

Inspections and Reporting

The Central Bank of Jordan, Jordanian Securities Commission, Ministry of Industry, Trade and Supply, and Telecommunications Regulatory Commission are required to conduct inspections and report suspicious transactions to the AML/CFT Unit.

Impact on Financial Activity in Jordan

The new law aims to enhance scrutiny and monitoring of financial activity in Jordan, making it more difficult for money launderers and terrorists to operate. The regulations and instructions issued under the repealed AML/CFT Law will remain applicable until replaced or repealed by the new law.

Contact Us

For further information on how this new law may impact your business, please contact Al Tamimi & Company’s Banking and Finance team: