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Jordanian Financial Crime Prevention: An Overview of the Anti-Money Laundering and Counter Terrorist Financing Law

In a bid to strengthen financial crime prevention measures, Jordan has enacted the Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021 (AML/CFT Law). The law replaces its predecessor, the Anti-Money Laundering and Counter Terrorist Financing Law No. 46 of 2007, with a revised framework designed to tackle money laundering and terrorist financing more effectively.

Understanding Money Laundering and Terrorist Financing

Definition of Money Laundering

The AML/CFT Law defines money laundering as the transfer or concealment of criminal proceeds.

Definition of Terrorist Financing

Terrorist financing involves providing funds to support terrorist activities.

Key Points

  • Both crimes can be committed by individuals or entities, regardless of whether they have been convicted of the underlying offense.
  • The law emphasizes that both crimes can be committed by individuals or entities, regardless of whether they have been convicted of the underlying offense.

Notification Obligations under the AML/CFT Law

Revised Classification of Entities

The AML/CFT Law introduces new notification obligations for entities covered under the law. Article 14 revises the classification of entities to which AML/CFT obligations apply, excluding those regulated by the Jordan Insurance Commission and limiting reporting requirements to:

  • Lawyers
  • Legal practitioners
  • Legal accountants

Improved Reporting Standards

Limited Disclosure of Reports

The AML/CFT Law allows for limited disclosure of reports submitted to the Anti-Money Laundering and Counter Terrorist Financing Unit (Unit) in certain circumstances. This relaxation of confidentiality is intended to facilitate commercial and legal necessities while maintaining the integrity of reporting standards.

Authorities’ Responsibilities

Procedures Aimed at Capturing Financial Crime

The law obliges various authorities, including:

  • The Central Bank of Jordan
  • The Jordanian Securities Commission
  • Others

to undertake procedures aimed at capturing financial crime and reporting it to the Unit. These measures include:

  • Field and office inspections
  • Communication with foreign authorities
  • Retention of reports and statistics

Conclusion

The AML/CFT Law represents a significant step forward in Jordan’s efforts to combat money laundering and terrorist financing. While building on the framework established by its predecessor, the law introduces important improvements and relaxations that are expected to enhance financial crime prevention measures in the country.

For further information or advice on financial agreements and transactions subject to the AML/CFT Law, please contact:

  • Dana Abduljaleel
  • Hakam Al Shawwa

Al Tamimi & Company’s Banking and Finance team is well-equipped to advise clients on financial agreements and transactions subject to the AML/CFT Law.