Financial Crime World

Financial Crime Risks in Jordan: Understanding the New Anti-Money Laundering and Counter Terrorist Financing Law

Jordan has recently introduced a revised anti-money laundering (AML) and counter terrorist financing (CFT) law, aimed at enhancing the country’s regulatory framework to combat financial crime. The new law replaces its predecessor and provides a more comprehensive approach to preventing and combating money laundering and terrorist financing.

Key Provisions

  • Money Laundering: Any person who knowingly transfers or transports funds derived from criminal activities can be charged with money laundering. This includes individuals who conceal or misrepresent the true nature of the funds, as well as those who earn, use, manage, invest, or possess such funds.
  • Financing of Terrorism: The law defines financing of terrorism as any person who provides or collects funds with the knowledge that they will be used to commit an act of terror. This includes individuals who intentionally contribute to or aid in committing such crimes, as well as those who finance travel for persons to commit acts of terror.

Scope and Penalties

  • The new law introduces a more comprehensive scope for what constitutes money laundering and financing of terrorism.
  • It also provides a wider application of penalties for those who engage in such activities.

Notification Obligations

  • Article 14 of the law revises the classification of entities that are subject to AML/CFT obligations, excluding persons or companies supervised by the Jordan Insurance Commission.
  • The law introduces an exception to the prohibition on disclosing reports submitted to the AML/CFT Unit in certain circumstances.

Obligations of Authorities

  • Authorities must undertake a range of procedures to capture financial crime and report it to the Unit, including:
    • Field and office inspections
    • Communication with foreign authorities that supervise financial crime
    • Retention of reports and statistics on information gathered pursuant to the law

Conclusion

While the new AML/CFT law does not completely reinvent the framework in Jordan, it builds on and improves the previous law, allowing for further scrutiny, monitoring, and capturing of money laundering and financing of terrorism activity.

If you require advice on financial agreements and transactions, please contact:

  • Dana Abduljaleel
  • Hakam Al Shawwa Al Tamimi & Company’s Banking and Finance team regularly advises clients on these matters.