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Jordan’s New Anti-Money Laundering and Counter Terrorist Financing Law: A Comprehensive Framework

Amman, Jordan - The Jordanian government has introduced a revised anti-money laundering (AML) and counter terrorist financing (CFT) law to strengthen the country’s financial regulations. The new law, enacted on September 16, 2021, replaces its predecessor and provides a more robust framework for combating financial crimes.

A Holistic Approach to AML/CFT

The new law defines money laundering as any activity that conceals or disguises the true nature of illegally obtained funds, while CFT is defined as providing or collecting funds with the knowledge that they will be used to finance terrorist activities. The law also broadens the scope of what constitutes money laundering and financing of terrorism, allowing for a wider application of penalties.

Notification Obligations

The new law revises the classification of entities subject to AML/CFT obligations, excluding certain individuals and companies from the scope. It also introduces an exception to the prohibition on disclosing reports submitted to the Anti-Money Laundering and Counter Terrorist Financing Unit (Unit), allowing for disclosure to authorized parties in certain circumstances.

Increased Scrutiny

The law obligates authorities to undertake various procedures to capture financial crime, including: * Field and office inspections * Communication with foreign authorities * Retention of reports and statistics

These obligations will facilitate increased scrutiny of financial activity and a stricter regulation of Jordanian entities to counter money laundering and terrorist financing more effectively.

Conclusion

The new AML/CFT law in Jordan represents a significant development in the country’s efforts to combat financial crimes. While it does not completely reinvent the framework, it builds on and improves the existing laws, providing a more comprehensive approach to detecting and preventing money laundering and financing of terrorism. The law will come into effect once it is published in the Official Gazette.

For Further Information

Contact Dana Abduljaleel (D.Abduljaleel@tamimi.com) or Hakam Al Shawwa (H.AlShawwa@Tamimi.com) at Al Tamimi & Company’s Banking and Finance team for more information on financial agreements and transactions.