Financial Crime World

Jordan Cracks Down on Money Laundering with New AML/CFT Law

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

AMMAN - In a move to strengthen its financial regulations and combat money laundering, Jordan has introduced a new Anti-Money Laundering and Counter Terrorist Financing Law (AML/CFT Law) aimed at curbing the flow of illicit funds.

Background

The law replaces the previous Anti-Money Laundering and Counter Terrorist Financing Law No. (46) of 2007 and its amendments, which was enacted to combat money laundering and terrorist financing activities in Jordan.

Key Provisions

Liability for Money Laundering

  • Any person who knows that funds are derived from criminal activity can be held liable for money laundering if they transfer, transport, or conceal such funds to misrepresent their source.
  • The law also covers instances where a person earns, uses, manages, invests, or possesses such funds.

Terrorist Financing

  • The new law defines terrorist financing as providing or collecting funds with the intention of committing an act of terror by a terrorist or terrorist organization.
  • It prohibits contributing to or aiding in the commission of terrorist financing crimes, including financing travel for individuals to commit acts of terror.

Notification Obligations

  • Entities subject to the law are required to report suspicious transactions and disclose information about their customers and business activities to the relevant authorities.

Stricter Regulations on Financial Institutions

  • The law imposes stricter regulations on financial institutions, including:
    • Field and office inspections
    • Communication with foreign authorities
    • Retention of reports and statistics on information gathered pursuant to the AML/CFT Law

Expert Analysis

Financial experts believe that the new law will significantly enhance Jordan’s ability to combat money laundering and terrorist financing. “This legislation demonstrates a commitment by the Jordanian government to strengthen its financial regulations and protect the country from illicit activities,” said Dana Abduljaleel, partner at Al Tamimi & Company’s Banking and Finance team.

Conclusion

The AML/CFT Law is seen as a major step forward in Jordan’s efforts to improve its financial sector and maintain its reputation as a stable and secure destination for foreign investment.