Jordan Takes Firm Stance Against Terrorism Financing with New Laws
In an effort to combat terrorism financing and money laundering, Jordan’s Securities Commission has issued new instructions for financial institutions operating in the country.
Anti-Money Laundering and Counter-Terrorist Financing Instructions
The “Instructions on Anti-Money Laundering and Counter Terrorist Financing in Securities Activities” were released last year to ensure that financial transactions are conducted with transparency and integrity. These instructions apply to all licensed financial services companies, custodians, mutual investment companies, and funds registered with the Securities Commission.
Key Requirements
- Financial institutions must implement an internal system to prevent money laundering and terrorist financing operations.
- This includes policies, procedures, and controls to identify suspicious transactions and report them to authorities.
- Employees are required to undergo training programs to increase awareness and knowledge about anti-money laundering and counter-terrorism financing laws.
- Financial institutions must verify the identity of their clients, including Politically Exposed Persons (PEPs), and conduct due diligence on transactions involving high-risk clients.
- Strict guidelines for documentation requirements are imposed to authenticate the identity of clients. Financial institutions must maintain accurate records and reports of all transactions, and keep certain documents for a specified period.
Expert Analysis
According to experts, these new instructions demonstrate Jordan’s commitment to combating terrorism financing and money laundering, particularly in light of the country’s growing economy and increasing foreign investment.
“This is an important step forward in ensuring the integrity of Jordan’s financial system,” said Khaled Saqqaf, partner at law firm Tamimi. “The instructions provide a clear framework for financial institutions to follow, and will help to prevent illegal activities that could undermine the country’s economic stability.”
Conclusion
Overall, these new instructions are seen as a positive development in Jordan’s efforts to combat terrorism financing and money laundering, and demonstrate the country’s commitment to maintaining a secure and transparent financial system.