Jordan Issues New Anti-Money Laundering and Terrorism Financing Regulations for Licensed Banks
The Central Bank of Jordan (CBJ) has issued new regulations to combat money laundering and the financing of terrorism by licensed banks in the country, effective June 26. This move comes in response to international recommendations and developments in local and global markets.
New Regulations Replace Existing Ones
Approved by the National Anti-Money Laundering and Terrorist Financing Committee on June 23, these new regulations replace those issued in 2010. The updated rules aim to enhance Jordan’s efforts to combat money laundering and terrorism financing, while also aligning with international standards set by organizations such as the Financial Action Task Force.
Key Requirements
- Conduct a comprehensive risk assessment for money laundering and terrorism financing annually using a risk-based system to evaluate clients and identify potential high-risk individuals.
- Develop policies and measures in place to manage and reduce risks associated with money laundering and terrorism financing.
- Allocate a yearly budget for training on anti-money laundering and terrorism financing, and develop plans and programs for such training.
Enhanced Client Due Diligence
The regulations also stress the importance of having procedures in place to thoroughly check clients’ identities, including:
- Identifying real beneficiaries
- Conducting risk assessments based on political affiliations
If a client is deemed high-risk or dangerous, banks must take measures to address these risks. The new rules clarify banks’ responsibilities when conducting transactions, whether sending, receiving, or mediating in money transfers.
Aligning with International Standards
The CBJ emphasized that the regulations aim to enhance Jordan’s efforts to combat money laundering and terrorism financing while also aligning with international standards set by organizations such as the Financial Action Task Force. The new rules are designed to strengthen the country’s anti-money laundering and counter-terrorism financing framework, ultimately reducing the risk of financial crimes and promoting a safer financial environment for all stakeholders.
By implementing these regulations, Jordan demonstrates its commitment to maintaining a robust and effective anti-money laundering and counter-terrorism financing regime, aligning with global best practices and international standards.