Financial Crime World

Jordanian Law Aims to Boost Financial Inclusion, Combat Money Laundering and Terrorist Financing

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In a significant move to boost financial inclusion in Jordan, the country’s lawmakers have introduced new legislation aimed at combating money laundering and terrorist financing. The Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021 (AML/CFT Law) replaces its predecessor, the Anti-Money Laundering and Counter Terrorist Financing Law No. 46 of 2007 and its amendments.

Key Features of the AML/CFT Law

  • Introduces a revised framework for combating financial crimes
  • Strengthens oversight mechanisms and enhances regulatory safeguards
  • Defines money laundering as any activity that conceals or misrepresents the true nature of funds, including those derived from criminal activities
  • Criminalizes the financing of terrorism
  • Imposes new obligations on regulatory authorities

Changes to Notification Obligations

  • Revises classification of entities subject to anti-money laundering and counter-terrorist financing regulations
  • Excludes certain businesses from the scope of the law
  • Allows for exceptions to confidentiality requirements, permitting disclosures to authorized executives, compliance officers, and other parties with legitimate access to reports

Obligations on Regulatory Authorities

  • Enhances scrutiny of financial activity
  • Requires reporting of suspected money laundering and terrorist financing activities
  • Imposes new obligations on the Central Bank of Jordan, the Jordanian Securities Commission, and the Ministry of Industry, Trade, and Supply

Conclusion

The AML/CFT Law marks a significant step forward in Jordan’s efforts to combat financial crimes and promote financial inclusion. The law’s constructive approach builds on existing regulations, improving and making them more detailed. As the country continues to strengthen its regulatory framework, it is expected that this legislation will contribute to increased transparency, monitoring, and capturing of money laundering and terrorist financing activities.