Financial Crime World

Jordan’s Banking Sector Under New Scrutiny: AML/CFT Regulations Take Center Stage

Introduction

The Hashemite Kingdom of Jordan has introduced a revised framework for anti-money laundering (AML) and counter-terrorism financing (CFT), aimed at strengthening its efforts against financial crime. The new regulations, outlined in the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021, aim to improve oversight and reporting standards across the banking sector.

Definitions and Provisions

  • Money Laundering: Any activity that conceals or misrepresents the true nature, source, location, disposal mechanism, transaction record, or property of funds.
  • Criminalization of Proceeds: The use of proceeds from criminal activities, including those committed outside Jordan, is criminalized. Financing of terrorism by providing or collecting funds with knowledge that they will be used to commit an act of terror is also prohibited.

Changes to Notification Obligations

  • Revised Classification: Article 14 of the law has revised the classification of entities required to report suspicious transactions, excluding persons or companies supervised by the Jordan Insurance Commission.
  • Exceptions to Confidentiality Provisions: The law allows for exceptions to confidentiality provisions in certain circumstances.

Authorities and Procedures

  • Central Bank of Jordan: Obligated to undertake procedures aimed at capturing financial crime and reporting it to the AML/CFT Unit.
  • Jordanian Securities Commission: Required to implement measures to prevent and detect financial crimes.
  • Ministry of Industry, Trade and Supply: Mandated to monitor and report suspicious transactions related to its activities.
  • Telecommunications Regulatory Commission: Obligated to provide assistance in tracing and identifying the source of suspicious transactions.

Measures Implemented

  • Field and Office Inspections
  • Communication with Foreign Authorities
  • Retention of Reports and Statistics

Conclusion

The revised framework is a significant step forward in Jordan’s efforts to combat money laundering and terrorist financing. The changes are expected to improve scrutiny, monitoring, and reporting standards across the banking sector, ultimately enhancing the country’s ability to detect and prevent financial crimes.

For further information or guidance on AML/CFT regulations in Jordan, please contact:

at Al Tamimi & Company’s Banking and Finance team.