Financial Crime World

Jordan Combats Financing of Terrorism with Tough New Law

Amman, Jordan - September 16, 2021

Jordan has enacted a new law to strengthen its anti-money laundering (AML) and counter-terrorism financing (CFT) framework, aimed at combating the financing of terrorism and money laundering.

A More Robust Framework

The Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021 replaces Jordan’s previous AML/CFT law and introduces a more comprehensive oversight model. The new law defines money laundering as any activity that conceals or misrepresents the true nature, source, location, disposal mechanism, transaction record, property in, or any other rights attached to funds.

Key Provisions

  • Money laundering is defined as any activity that conceals or misrepresents the true nature, source, location, disposal mechanism, transaction record, property in, or any other rights attached to funds.
  • The crime can be committed by anyone who earns, uses, manages, invests or possesses such funds, or aids, influences, facilitates or conceals money laundering activities.
  • Terrorist financing is defined as providing or collecting funds with the knowledge that they will be used to commit an act of terror.

Notification Obligations

The new law introduces notification obligations for entities under its scope, including:

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

These entities are required to report suspicious transactions to the AML/CFT Unit and maintain records of all transactions.

Authorities’ Responsibilities

Various authorities, including:

  • Central Bank of Jordan
  • Jordanian Securities Commission
  • Ministry of Industry, Trade and Supply

are obligated to undertake procedures aimed at capturing financial crime and reporting it to the AML/CFT Unit. This includes:

  • Conducting field and office inspections
  • Communicating with foreign authorities that supervise financial crime
  • Retaining reports and statistics on information gathered under the law

Significant Step Forward

The new law is seen as a significant step forward in Jordan’s efforts to combat money laundering and terrorist financing. It builds on previous regulations and introduces a more detailed framework for monitoring and capturing financial crimes.

“Djordan has taken a major step forward in its fight against terrorism financing and money laundering,” said Dana Abduljaleel, partner at Al Tamimi & Company. “The new law provides a robust framework for monitoring and capturing financial crimes and will help to strengthen the country’s efforts to combat these threats.”

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