Financial Crime World

Jordan: Banking Regulations for Anti-Money Laundering Come into Effect

The government of Jordan has announced the implementation of new banking regulations aimed at combating money laundering and terrorist financing. These regulations, which came into effect on [date], are designed to strengthen the country’s financial system and prevent illicit activities.

Enhanced Due Diligence Measures

Under the new rules, banks and other financial institutions will be required to implement enhanced due diligence measures when dealing with customers from high-risk countries or sectors. This includes:

  • Verifying the identity of customers and their beneficial owners
  • Monitoring transactions for suspicious activity

Internal Controls and Procedures

The regulations also require banks to establish internal controls and procedures to prevent money laundering and terrorist financing, including:

  • Implementing policies and procedures for reporting suspicious activity
  • Maintaining records of all transactions

Identifying and Reporting Suspicious Activity

In addition, the regulations provide guidelines for banks on how to identify and report suspicious activity. Banks are required to report any suspicions of money laundering or terrorist financing to the relevant authorities within a specified timeframe.

Compliance with International Standards

The new regulations are part of Jordan’s efforts to comply with international standards on anti-money laundering and combating the financing of terrorism (AML/CFT). The country has been working closely with international organizations, such as the Financial Action Task Force (FATF), to strengthen its AML/CFT regime.

Quote from Governor of Central Bank

“The implementation of these regulations is a critical step in our efforts to combat money laundering and terrorist financing,” said [name], Governor of the Central Bank of Jordan. “We are committed to maintaining a robust and effective AML/CFT regime that protects our financial system and prevents illicit activities.”

Applicability

The new regulations apply to all banks and other financial institutions operating in Jordan, including:

  • Microfinance companies
  • Money exchange companies
  • Islamic banks

Resources

For more information on the new regulations, please see the following resources:

  • Tools for providing liquidity to Islamic banks from the Central Bank (Circular to licensed banks)
  • Commissions Instruction for Microfinance Companies No. (1/2023)
  • Cover letter no (10/1/7702) dated (6/6/2018) of Implementing the International Financial Reporting Standard 9 Instructions No. (13/2018)
  • Instructions for Licensing Money Exchange Companies branches No. (40/2008)

These resources provide guidance on how to comply with the new regulations and can be accessed through the Central Bank of Jordan’s website.

Conclusion

The implementation of these regulations is a significant step forward in Jordan’s efforts to combat money laundering and terrorist financing, and demonstrates the country’s commitment to maintaining a robust and effective AML/CFT regime.