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Best Practices for Banks in Jordan: Arab Bank Leads the Way in AML Compliance

A recent report by the US State Department highlights Arab Bank’s commitment to anti-money laundering (AML) and countering the financing of terrorism (CFT), making it a leader among Jordanian banks. The bank’s Group Regulatory Compliance Division, led by Executive Vice President Michael Matossian, has worked tirelessly to maintain this leadership position across the MENA region.

Compliance Practices

Arab Bank’s compliance practices begin at the top, with mandatory training on its Code of Conduct for all employees globally. This comprehensive training covers a range of subjects, including:

  • AML
  • CFT
  • Fraud
  • Corruption
  • Privacy and confidentiality
  • Conflict of interest
  • Insider information
  • Trading in securities
  • Information security

Regulatory Oversight

The bank is subject to regulatory oversight in each jurisdiction where it operates and has traditionally received the highest ratings from regulatory bodies. Arab Bank’s Compliance Manager reports directly to the CEO and has direct access to the Board of Directors and its Audit Committee, ensuring that compliance risk management governance is properly managed.

Independent Compliance Departments

To ensure effective compliance, the bank has established independent compliance departments in each operating branch, managed by dedicated compliance officers. These officers report directly to Group Regulatory Compliance-Head Office and are active members of key steering committees such as:

  • Country Management Committee
  • AML and CTF Steering Committee

Industry Collaborations

Arab Bank’s commitment to compliance is not limited to internal practices alone. The bank remains committed to working with others in the industry to bolster defenses against terrorist financing and money laundering. It participates actively in international forums, speaking on compliance-related matters at conferences hosted by:

  • Union of Arab Banks
  • Public/Private Sector Dialogue supported by the US Department of Treasury

Regulatory Compliance Summits

The bank also holds periodic regulatory compliance summits with guest speakers from across the international banking community. In 2008, it hosted a compliance workshop attended by compliance professionals from banks throughout Jordan, including representatives from the Central Bank of Jordan.

Know Your Customer, Anti-Money Laundering, and Combating Terrorist Financing Manuals

In addition to its internal practices and industry collaborations, Arab Bank has developed comprehensive Know Your Customer, Anti-Money Laundering, and Combating Terrorist Financing manuals that are followed by its worldwide branches. These manuals set forth the bank’s policies and standards for:

  • Accepting customers
  • Verifying identity and legitimacy
  • Screening accounts against blacklists
  • Employee training

Advanced Technologies and Processes

Arab Bank’s commitment to AML compliance is evident in its adoption of advanced technologies and processes, including an automated screening system incorporating US OFAC and United Nations sanctions lists. Its continuous monitoring and investigation of unusual activity utilizing an advanced AML monitoring system further demonstrates its dedication to staying ahead of evolving regulations and laws.

Conclusion

As a leader in the MENA region, Arab Bank’s compliance practices serve as a model for other banks to follow. By adopting best practices and remaining committed to AML and CFT efforts, the bank has established itself as a trusted partner in the Jordanian banking community.