Financial Crime World

Jordan Enacts Revised Anti-Money Laundering and Counter Terrorist Financing Law

Amman, Jordan - The Hashemite Kingdom of Jordan has recently enacted a revised Anti-Money Laundering and Counter Terrorist Financing Law (AML/CFT Law) aimed at strengthening the country’s financial regulations to prevent money laundering and terrorist financing.

Overview of the AML/CFT Law

The new law replaces its predecessor, the Anti-Money Laundering and Counter Terrorist Financing Law No. 46 of 2007 and its amendments. The AML/CFT Law introduces a more comprehensive framework for anti-money laundering (AML) and countering terrorist financing (CFT). The law establishes stricter regulations to prevent financial crime, including money laundering and terrorist financing.

Key Features of the AML/CFT Law

  • Definition of Money Laundering: Any person who, with knowledge that the moneys in question are proceeds of criminal activities, transfers or transports such moneys to misrepresent or conceal their illegitimate source, or earns uses, manages, invests or possesses such moneys.
  • Scope of Terrorist Financing: Any person who provides or collects funds with the knowledge that they will be used to commit an act of terror is committing a criminal offence.
  • Notification Obligations: Entities subject to the law’s regulations must notify the AML/CFT Unit in certain circumstances, including when arranging and/or performing financial operations on behalf of other persons and/or entities.

Procedures for Capturing Financial Crime

Jordanian authorities, including:

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

are required to undertake a range of procedures to capture financial crime and report it to the AML/CFT Unit. These include:

  • Field and office inspections
  • Communication with foreign authorities that supervise financial crime
  • Retention of reports and statistics on information gathered pursuant to the AML/CFT Law

Conclusion

The new law is significant in its efforts to strengthen Jordan’s financial regulations and prevent money laundering and terrorist financing. Al Tamimi & Company’s Banking and Finance team regularly advises on financial agreements and transactions. For further information, please contact: