Financial Crime World

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Jordan’s Battle Against Financial Crime: Consequences of AML/CFT Law

Introduction

Amman, Jordan - The Hashemite Kingdom of Jordan has taken a significant step forward in its efforts to combat financial crime with the introduction of the Anti-Money Laundering and Counter Terrorist Financing Law No. (20) of 2021.

The new law, which came into effect on September 16, 2021, replaces its predecessor and provides a more comprehensive framework for detecting and preventing money laundering and terrorist financing activities in Jordan.

What does the law cover?

  • The AML/CFT Law sets out to criminalize any individual or entity that knowingly engages in financial transactions with proceeds of criminal activities.
  • The law also covers instances where individuals or entities provide funds, whether from a legitimate source or not, with the knowledge that such funds will be used to finance terrorist activities.

Notification Obligations

The law places obligations on various authorities, including:

  • The Central Bank of Jordan
  • The Jordanian Securities Commission
  • And others, to report any suspicious financial activity to the AML/CFT Unit.
  • Additionally, entities such as:
    • Lawyers
    • Legal practitioners
    • Legal accountants are now required to notify the Unit of any financial operations they perform on behalf of clients.

Improved Reporting Standards

The new law introduces an exception to the prohibition on disclosure of reports submitted to the Unit, allowing for disclosures to be made in certain circumstances. This is seen as a significant improvement over the previous law, which prohibited all disclosures.

Impact of the Law

Experts say that the AML/CFT Law will have a profound impact on Jordan’s efforts to combat financial crime. The law provides a more robust framework for detecting and preventing money laundering and terrorist financing activities, and its implementation is expected to:

  • Increase scrutiny of financial activity
  • Lead to stricter regulation of Jordanian entities

Conclusion

The introduction of the AML/CFT Law marks a significant step forward in Jordan’s efforts to combat financial crime. The law provides a more comprehensive framework for detecting and preventing money laundering and terrorist financing activities, and its implementation is expected to have far-reaching consequences for the country’s financial sector.