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Money Laundering Detection Tools in Jordan: A Comprehensive Framework

Jordan has strengthened its anti-money laundering and counter-terrorism financing (AML/CFT) framework with the enactment of the AML/CFT Law No. 20 of 2021, aimed at combating financial crime and terror financing. The law introduces a revised and more comprehensive oversight model, aligned with global standards.

The AML/CFT Framework

Under Article 3 of the AML/CFT Law, money laundering is defined as any transaction or activity that conceals the source of criminal proceeds or aids in committing such crimes. The law also encompasses financing of terrorism, which is deemed committed by anyone who knowingly provides funds for terrorist activities.

Notification Obligations

The law has revised the classification of entities subject to AML/CFT obligations, limiting it to:

  • Lawyers
  • Legal practitioners
  • Legal accountants arranging financial operations on behalf of others

Additionally, the law allows for exceptions to reporting confidentiality in certain circumstances, such as disclosure to executives or compliance officers.

Obligations of Authorities

The law requires authorities, including:

  • The Central Bank of Jordan
  • The Jordanian Securities Commission
  • Others

to undertake various procedures to capture financial crime and report it to the AML/CFT Unit. These procedures include:

  • Field and office inspections
  • Communication with foreign authorities
  • Retention of reports and statistics

Conclusion

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The AML/CFT Law represents a significant step forward in Jordan’s efforts to combat money laundering and financing of terrorism. The law’s revisions and enhancements aim to improve scrutiny, monitoring, and capture of financial activity within the country. With its comprehensive framework, Jordan is better equipped to detect and prevent financial crimes.

For more information on AML/CFT regulations and advice on financial agreements and transactions, contact:

  • Dana Abduljaleel
  • Hakam Al Shawwa at Al Tamimi & Company’s Banking and Finance team.