Financial Crime World

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Jordanian Authorities Crack Down on Financial Crime: AML/CFT Law Takes Effect

Amman, Jordan - The Hashemite Kingdom of Jordan has enacted the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021 (AML/CFT Law) to strengthen its anti-money laundering and counter-terrorism financing framework.

What Constitutes Money Laundering and Financing of Terrorism?

Under Article 3 of the AML/CFT Law, money laundering is deemed committed by any person who:

  • Knowingly transfers or transports moneys with an illegitimate source
  • Conceals the true nature of such moneys
  • Uses them for criminal purposes

Similarly, Article 4 of the law defines terrorist financing as:

  • Providing funds to commit acts of terror
  • Intentionally contributing to such activities
  • Financing travel for terrorism-related purposes

Notification Obligations

The AML/CFT Law imposes notification obligations on entities and individuals subject to its scope, including:

  • Lawyers
  • Legal practitioners
  • Legal accountants

These entities are required to:

  • Report suspicious transactions
  • Maintain records of financial operations
  • Prohibit disclosure of reports submitted to the AML/CFT Unit, except in cases of intergroup disclosures between financial institutions within a single group or where legally authorized.

Authorities’ Obligations

The law obligates authorities, including:

  • The Central Bank of Jordan
  • The Jordanian Securities Commission
  • Others

to undertake procedures aimed at capturing financial crime and reporting it to the AML/CFT Unit. These procedures include:

  • Field and office inspections
  • Communication with foreign authorities
  • Retention of reports and statistics

Conclusion

The AML/CFT Law is a significant development in Jordan’s efforts to combat financial crime. While it does not completely reinvent the framework, it builds on and improves upon its predecessor. The law’s increased scrutiny and regulation of financial activity will help to prevent money laundering and terrorist financing, making it a vital tool in the fight against these serious crimes.

For further information, please contact Al Tamimi & Company’s Banking and Finance team at D.Abduljaleel@tamimi.com or H.AlShawwa@Tamimi.com.