Financial Crime World

Jordan’s Banks Face Tough New Rules to Combat Money Laundering and Terrorist Financing

Strengthening Anti-Money Laundering and Combating the Financing of Terrorism Regime

In an effort to combat money laundering and terrorist financing, Jordan has introduced new Bank Secrecy Act (BSA) regulations for banks operating in the country. The regulations aim to enhance the effectiveness of anti-money laundering (AML)/combating the financing of terrorism (CFT) controls by mandating stricter reporting requirements and due diligence standards for financial institutions.

Key Requirements

  • Establish and maintain procedures to ensure compliance with the BSA, including reporting suspicious transactions and maintaining accurate records
  • Conduct enhanced customer due diligence on high-risk customers and implement effective AML/CFT programs
  • File Suspicious Activity Reports (SARs) with relevant authorities within 30 days of detection, including detailed information about the suspicious activity

Penalties for Non-Compliance

  • Fines
  • Imprisonment

Transition Period

Jordanian banks have been given a transition period to adapt to the new regulations. The government has emphasized its commitment to ensuring the stability and integrity of the country’s financial system.

Experts’ Views

“The new rules demonstrate the government’s commitment to ensuring the stability and integrity of the country’s financial system.” - [Insert name], an expert in financial regulation “These regulations are a significant step forward in Jordan’s efforts to combat money laundering and terrorist financing.” - [Insert name], senior expert in financial regulation

The Jordanian Financial Intelligence Unit (JFIU) has reported an increase in suspicious transactions being reported by banks operating in Jordan, attributed to the government’s efforts to strengthen its AML/CFT regime and improve transparency in the financial sector.

Conclusion

The introduction of these new rules is part of Jordan’s efforts to strengthen its AML/CFT regime and meet international standards set by organizations such as the Financial Action Task Force (FATF) and the International Monetary Fund (IMF). The government has emphasized its commitment to ensuring the stability and integrity of the country’s financial system, and experts view these regulations as a positive step forward in the fight against money laundering and terrorist financing.