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Jordanian Financial Transactions: A Guide to CFT Rules

Strengthening Anti-Money Laundering and Counter-Terrorist Financing Measures in Jordan

In a move aimed at enhancing anti-money laundering and counter-terrorist financing measures, the Jordanian government has introduced a revised framework under the Anti-Money Laundering and Counter-Terrorist Financing Law No. (20) of 2021.

Replacing the Previous Framework

The new law replaces its predecessor, the Anti-Money Laundering and Counter-Terrorist Financing Law No. (46) of 2007 and its amendments, with a more comprehensive and robust framework for combating financial crimes.

Defining Money Laundering and Terrorist Financing

According to the revised law:

  • Money Laundering: Any person who knowingly transfers or transports money that is proceeds of criminal activities, with the intention of misrepresenting or concealing its illegitimate source.
  • Terrorist Financing: Providing or collecting funds, directly or indirectly, with the intention of financing terrorism. This includes arranging and/or performing financial operations on behalf of other persons and/or entities.

Notification Obligations

Under the new law, notification obligations have been revised to apply to specific entities, including:

  • Lawyers
  • Legal practitioners
  • Legal accountants who arrange and/or perform financial operations on behalf of other persons and/or entities.

The law also prohibits disclosure of reports submitted to the AML/CFT Unit, except in certain circumstances where disclosure is necessary.

Expert Insights

The revised framework has been welcomed by authorities and experts alike, who believe it will increase scrutiny of financial activity and strengthen Jordan’s efforts to combat money laundering and terrorist financing.

Get in Touch

For further information on financial agreements and transactions, please contact:

at Al Tamimi & Company’s Banking and Finance team.