Financial Crime World

Here is the rewritten article in Markdown format:

Jordan Adopts Revised Framework to Combat Money Laundering and Terrorist Financing

======================

The Hashemite Kingdom of Jordan has introduced a revised framework to combat money laundering and terrorist financing, aimed at strengthening its efforts against financial crimes. The new 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.

Enhanced Framework for Detecting Money Laundering and Terrorist Financing

The AML/CFT Law introduces a more comprehensive framework for detecting money laundering and terrorist financing, with a focus on enhanced oversight and regulation. Under the new law, money laundering is defined as any activity that conceals or misrepresents the source of funds, including those derived from criminal activities outside Jordan.

Criminalizing Financing of Terrorism

The law also criminalizes the financing of terrorism, which includes direct or indirect provision of funds to commit acts of terror, contribute to terrorist organizations, or facilitate travel for terrorist purposes. The crime of financing terrorism may be committed even if the act of terror is not actually carried out.

Notification Obligations and Record Keeping

In addition to these definitions, the AML/CFT Law imposes notification obligations on certain entities, including:

  • Lawyers
  • Legal practitioners
  • Legal accountants who arrange and perform financial operations on behalf of others

These entities are required to report suspicious transactions and maintain records of their activities.

Stricter Regulations for Authorities

The law also introduces stricter regulations for authorities, including:

  • The Central Bank of Jordan
  • The Jordanian Securities Commission
  • Other regulatory bodies

These authorities are required to conduct regular inspections, communicate with foreign authorities, and retain reports and statistics on information gathered under the AML/CFT Law.

Strengthening International Cooperation

The introduction of this revised framework is seen as a significant step in the fight against money laundering and terrorist financing in Jordan. The law aims to improve transparency and accountability in financial transactions, reduce the risk of financial crime, and strengthen international cooperation to combat these threats.

If you would like further information on how the AML/CFT Law may impact your business or financial activities, please contact:

at Al Tamimi & Company’s Banking and Finance team.