Jordan’s Central Bank Issues New Anti-Money Laundering Regulations Amid International Pressure
New Regulations Aim to Strengthen Measures Against Money Laundering and Terrorism Financing
The Central Bank of Jordan has issued new anti-money laundering and countering financing of terrorism regulations for licensed banks in the country, effective June 26. The move comes in response to international recommendations and developments in local and global financial markets.
Key Changes in New Regulations
- Risk-Based Approach: A risk-based approach will be used to evaluate potential money laundering and terrorism funding risks, with annual comprehensive assessments required of all banks.
- Client Checks: Banks are now required to conduct thorough client checks, identifying clients on a risk-assessment basis, including identifying the real beneficiary and verifying their identity.
- High-Risk Political Persons: A risk-based system will be implemented to determine if a Jordanian or foreign client is considered a high-risk political person, with measures outlined for dealing with individuals deemed dangerous.
Clarification of Responsibilities
- Transactions: The regulations clarify the responsibilities of banks when conducting transactions, including sending, receiving, or facilitating money transfers.
- Training Plans: Banks are required to develop training plans and allocate an annual budget for anti-money laundering and terrorism financing training programs.
Compliance with International Standards
The new regulations aim to strengthen Jordan’s financial system and comply with international standards set by organizations such as the Financial Action Task Force. The National Anti-Money Laundering and Terrorist Financing Committee approved the new regulations on June 23, replacing those issued in 2010.
Conclusion
The issuance of these new regulations demonstrates Jordan’s commitment to combating money laundering and terrorism financing, and its willingness to comply with international standards. The measures outlined in the regulations are designed to strengthen the financial system and prevent the misuse of funds for illicit purposes.