Financial Crime World

What is Money Laundering in Jordan?

Money laundering is a serious issue that has far-reaching consequences for the financial system and national security. Jordan has taken significant steps to combat money laundering and terrorist financing activities by implementing effective Anti-Money Laundering (AML) compliance regulations.

The Role of the Jordan Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU)

At the heart 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-terrorism measures. AMLU works closely with other regulatory bodies to ensure that financial institutions and designated non-financial businesses and professions (DNFBPs) are compliant with AML/CFT regulations.

Jordan’s legal and regulatory framework has been revised to align with international standards, with key legislation including Law No. 46 for the Year 2007 Anti Money Laundering and Counter Terrorist Financing Law. This law defines money laundering as any action that conceals the true nature, source, location, or ownership of illegally obtained funds.

Definition of Money Laundering

According to Article 2 of the law, money laundering is defined as:

  • Any actions that involve concealing the true nature, source, location, means of movement, ownership, or related rights with knowledge that any of the funds are the proceeds of any crimes.
  • Conversion, transfer, moving, or disguising the source of funds.
  • Preventing the identification of the person who committed the underlying crime that produced the funds.
  • Acquiring, possessing, using, managing, or controlling such property.

Politically Exposed Persons (PEPs)

The law also defines Politically Exposed Persons (PEPs), which include individuals holding prominent public positions and their immediate family members and close associates. Financial institutions and other covered entities are required to apply enhanced due diligence measures when dealing with PEPs.

Implementation of AML/CFT Programs

Reporting entities, including banks, financial institutions, and DNFBPs, must implement comprehensive AML/CFT programs, which include:

  • Risk-based procedures for identifying and verifying the identity of customers, especially PEPs.
  • Maintaining records of customer identification and transaction data for a specified period.
  • Reporting suspicious activities to the Financial Intelligence Unit (FIU) or relevant authorities.

Penalties for Non-Compliance

The law outlines penalties for non-compliance, including:

  • Fines
  • Sanctions
  • Criminal charges against individuals or entities that fail to adhere to AML/CFT obligations.

With these measures in place, Jordan is well-positioned to combat money laundering and terrorist financing activities and maintain its commitment to transparency and accountability.