Financial Crime World

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Jordan’s Anti-Money Laundering Laws: A Crucial Step in Combating Financial Crime

In a bid to prevent money laundering and terrorist financing, Jordan has established a robust legal framework to combat financial crime. The country has several major regulatory bodies responsible for implementing anti-money laundering (AML) and counter-terrorist financing (CTF) measures.

The Anti-Money Laundering & Counter Terrorist Financing Unit

At the forefront of AML efforts is the Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU), which plays a central role in coordinating efforts to combat money laundering and terrorist financing. The unit works closely with other regulatory bodies, including the Central Bank of Jordan, to ensure the effectiveness of AML regulations.

Mutual Evaluation Report

The Financial Action Task Force (MENAFATF) - Mutual Evaluation Report provides valuable insights into Jordan’s AML/CTF framework. The report highlights the country’s commitment to implementing international standards and best practices in combating financial crime.

Key Provisions

Definition of Money Laundering

The Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021, which repealed and replaced the previous law, introduces several key provisions aimed at strengthening Jordan’s AML/CTF regime.

  • Defines money laundering as any activity that conceals or disguises the true nature, source, location, method of disposal, transaction record, or any other rights associated with funds.
  • Criminalizes the financing of terrorism, including providing or collecting funds for terrorist activities.

Enhanced Due Diligence Measures

The law introduces enhanced due diligence measures for politically exposed persons (PEPs), which include individuals who hold prominent public positions, their immediate family members and close associates. Financial institutions and other covered entities are required to apply these measures when dealing with PEPs.

Reporting Entities

Reporting entities, including banks, financial institutions, and designated non-financial businesses and professions (DNFBPs), must implement comprehensive AML/CTF programs that include:

  • Risk-based procedures for identifying and verifying the identity of customers, especially PEPs.
  • Maintenance of records of customer identification and transaction data for a specified period.

Sanctions and Penalties

The law outlines penalties for non-compliance, including fines, sanctions, or criminal charges against individuals or entities that fail to adhere to AML/CTF obligations. The implementation of these provisions is expected to significantly enhance Jordan’s ability to combat financial crime and protect its financial system from the risks associated with money laundering and terrorist financing.

Conclusion

In conclusion, Jordan’s anti-money laundering laws demonstrate the country’s commitment to combating financial crime and protecting its financial system. The country’s robust legal framework and regulatory bodies are well-equipped to prevent and detect money laundering and terrorist financing activities, thereby ensuring a safe and secure environment for businesses and individuals alike.