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Jordanian Authorities Crack Down on Money Laundering with New Anti-Money Laundering and Counter Terrorist Financing Law

Amman, Jordan - In a bid to strengthen its anti-money laundering (AML) and counter terrorist financing (CFT) regulations, the Hashemite Kingdom of Jordan has enacted a new law aimed at curbing financial crimes. The 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 and its amendments.

Definition of Money Laundering

Under the new law, money laundering is defined as any activity involving proceeds of criminal activities, including:

  • Transferring or concealing funds to misrepresent their source
  • Aiding individuals involved in the original crime

The law also includes provisions for terrorist financing, which involves providing or collecting funds knowing they will be used to commit acts of terror.

Framework and Requirements

The AML/CFT Law introduces a revised framework that provides for a more comprehensive oversight model, with greater emphasis on regulatory safeguards. The law applies to entities falling under its ambit, including:

  • Lawyers
  • Legal practitioners
  • Legal accountants who arrange and/or perform financial operations on behalf of other persons and/or entities

Entities subject to the AML/CFT Law are required to report any suspicious transactions or activities to the AML/CFT Unit (Unit), a special unit established by the Central Bank of Jordan. The law prohibits disclosure of reports submitted to the Unit, except in cases where disclosure is necessary for commercial or legal purposes.

Obligations and Responsibilities

The new law also obliges authorities, including:

  • The Central Bank of Jordan
  • Other regulatory bodies

to conduct field and office inspections, communicate with foreign authorities, and retain reports and statistics on information gathered under the AML/CFT Law. These measures are aimed at increasing scrutiny of financial activity and enhancing regulation of Jordanian entities.

Conclusion

In conclusion, the AML/CFT Law marks a significant step forward in Jordan’s efforts to combat money laundering and terrorist financing. The law provides for a more robust framework that allows authorities to better monitor and capture financial crimes.