Financial Crime World

Jordan Adopts Stringent AML/CFT Regulations to Combat Financial Crimes

In an effort to curb financial crimes and maintain transparency in its financial system, Jordan has implemented robust Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations. The country’s regulatory bodies have issued several directives and guidelines to ensure that all financial institutions operating within its borders adhere to international standards.

Regulatory Framework

Regulation No. 40 for the Year 2009

This regulation governs the Anti-Money Laundering & Counter Terrorist Financing Unit, outlining the unit’s role and responsibilities in monitoring and combating money laundering and terrorist financing activities. The regulation also sets out the requirements for reporting suspicious transactions and maintaining customer due diligence records.

Regulation No. 44 for the Year 2008

This regulation regulates the National Anti-Money Laundering & Counter Terrorist Financing Committee, which is responsible for developing policies and guidelines to prevent money laundering and terrorist financing in Jordan.

Requirements for Financial Institutions

  • Implement robust AML/CFT programs, including:
    • Customer identification
    • Ongoing monitoring
    • Reporting of suspicious transactions
  • Maintain records of customer due diligence
  • Conduct regular audits to ensure compliance with the AML/CFT framework

International Standards and Commitments

Jordan’s AML/CFT regulations are in line with international standards set by: + Financial Action Task Force (FATF) + Middle East and North Africa Financial Action Task Force (MENAFATF) + United Nations’ Recommendations on Combating Money Laundering and Financing of Terrorism

Industry Expert Insights

Jordan’s efforts to strengthen its AML/CFT framework have been praised by industry experts, who note that it is essential for maintaining a stable and trustworthy financial system. However, some critics have expressed concerns about the regulatory burden imposed on financial institutions and the need for greater awareness among the public about the risks associated with money laundering and terrorist financing.

Conclusion

Jordan’s AML/CFT regulations demonstrate its commitment to combating financial crimes and protecting its financial system from abuse. The country’s efforts are expected to attract foreign investment and enhance its reputation as a stable and secure destination for international business.