Financial Crime World

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Jordan’s Fight Against Money Laundering and Terrorist Financing: An Overview of Regulations by Country

In Jordan, several regulatory bodies work together to prevent money laundering and terrorist financing activities within the country’s financial system. At the forefront of these efforts is the Jordan Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU), which plays a central role in coordinating anti-money laundering and counter-terrorist financing measures.

International Cooperation

The Financial Action Task Force (MENAFATF) Mutual Evaluation Report provides valuable insights into Jordan’s AML/CTF regulatory framework and its compliance with international standards. Additionally, various regulatory departments within Jordan contribute to AML compliance, although the specific departments involved are not detailed in the source.

Jordan has established a legal and regulatory framework for anti-money laundering and counter-terrorist financing measures, including the revision of regulations to align with international standards. The country’s Anti-Money Laundering and Counter Terrorist Financing Law No. (46) For the Year 2007 outlines the definition of money laundering and the activities that constitute it.

Obligations on Financial Institutions

The law places obligations on financial institutions, such as banks and money exchangers, to establish anti-money laundering policies and procedures. These institutions are required to:

  • Implement customer due diligence measures
  • Report suspicious transactions
  • Maintain records of customer identification and transaction data for a specified period

Strengthened Regulatory Measures

The Anti-Money Laundering and Counter Terrorist Financing Law No. (20) of 2021 replaced the repealed AML/CFT Law and introduced strengthened regulatory measures. The law defines money laundering as any action involving the proceeds of illicit activity, including:

  • Concealing or misrepresenting the true nature, source, location, or transaction record of such funds

The law also addresses the financing of terrorism, stating that any person who willfully provides or collects money from a lawful or unlawful source with knowledge it will be used to finance terrorist activities is guilty of an offense.

Politically Exposed Persons (PEPs)

The law defines PEPs and requires financial institutions to apply enhanced due diligence measures when dealing with PEP clients.

Compliance Obligations

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

  • Risk-based procedures for identifying and verifying the identity of customers
  • Failure to comply with these obligations may result in fines, sanctions, or criminal charges against individuals or entities.

Conclusion

In conclusion, Jordan’s regulations aim to prevent money laundering and terrorist financing activities within its financial system. The country’s legal framework provides a solid foundation for these efforts, and it is essential for financial institutions and other reporting entities to adhere to the AML/CFT obligations outlined in the law to avoid penalties and ensure the integrity of the financial sector.

References

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