Financial Crime World

Jordan Enhances Anti-Money Laundering and Combating the Financing of Terrorism Measures

The Hashemite Kingdom of Jordan has taken significant steps to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, according to a recent report.

New Laws and Instructions

In 2021, new laws and instructions were issued requiring financial institutions and designated non-financial businesses and professions (DNFBPs) to:

  • Freeze funds and other assets without delay if they suspect that such assets are linked to ML/TF or the proceeds of criminal activity
  • Provide detailed information about the action taken within three business days

Guidelines for Freezing Procedures

The Kingdom has also issued guidelines to FIs and DNFBPs on freezing procedures, as well as instructions on how to handle requests from individuals or entities seeking to remove their names from sanctions lists. These guidelines aim to ensure that the rights of bona fide third parties are respected when applying the provisions of these instructions.

Penalties for Non-Compliance

The report highlights that the Kingdom has granted powers to impose graduated penalties on reporting entities, ranging from a written warning up to revoking or withdrawing the license, in cases where they fail to comply with AML/CFT regulations.

Frozen Funds Management

In addition, the Technical Committee has been empowered to:

  • Approve requests to use frozen funds to meet necessary expenses
  • Notify the relevant Sanctions Committee of this decision
  • Inform the petitioner of the result of the petition within three business days from the date of its decision

Addressing Shortcomings

The report concludes that Jordan has addressed all shortcomings mentioned in the previous Mutual Evaluation Report (MER) regarding Recommendation 7, which pertains to the freezing and unfreezing of assets.

Strengthened Reporting Requirements

In another development, the Kingdom has strengthened its reporting requirements for suspicious transactions. Under Law No. 20 of 2021:

  • Financial institutions are now required to report immediately if they have reasonable grounds to suspect that funds are the proceeds of a predicate offense or terrorist financing
  • The law provides protection for financial institution employees who disclose information in good faith, even if the underlying criminal activity is unknown
  • The law prohibits tipping off and ensures confidentiality of reporting, with some exceptions

Conclusion

The report concludes that Jordan has addressed all shortcomings mentioned in the MER regarding Recommendations 20 and 21, which pertain to reporting of suspicious transactions and tipping-off and confidentiality, respectively.

Overall, the Kingdom’s efforts have resulted in a high level of compliance with international AML/CFT standards.