Financial Crime World

Financial Crime Case Studies in Jordan: A Comprehensive Overview of the Anti-Money Laundering and Counter Terrorist Financing Law

Jordan has taken a significant step towards strengthening its anti-money laundering (AML) and counter terrorist financing (CFT) framework with the enactment of the Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021.

Key Changes Introduced by the New Law

  • Definition of Money Laundering: The new law defines money laundering as any activity that conceals or misrepresents the true nature, source, location, disposal mechanism, transaction record, property in, or any other rights attached to funds derived from criminal activities.
  • Criminalization of Terrorism Financing: The law also criminalizes the financing of terrorism, which includes providing or collecting funds with the knowledge that they will be used to commit an act of terror.

Expanded Scope of Entities Subject to AML/CFT Obligations

The law now applies to:

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

Stricter Reporting Requirements for Authorities

Authorities, including the Central Bank of Jordan, the Jordanian Securities Commission, the Ministry of Industry, Trade and Supply, and the Telecommunications Regulatory Commission, are required to:

  • Conduct field and office inspections
  • Communicate with foreign authorities
  • Retain reports and statistics on information gathered under the AML/CFT Law

Conclusion

The Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021 is a significant development in Jordan’s fight against financial crime. The law builds upon and improves the existing framework, introducing new measures to increase scrutiny, monitoring, and capturing of money laundering and terrorist financing activity.

Contact Us

For more information on how Al Tamimi & Company’s Banking and Finance team can assist with financial agreements and transactions, please contact:

  • Dana Abduljaleel
  • Hakam Al Shawwa