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Financial Crime Definition in Jordan: A New Era of Anti-Money Laundering and Counter-Terrorist Financing Laws

Jordan has taken a significant step towards strengthening its fight against financial crimes by enacting the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021, which replaces its predecessor, the Anti-Money Laundering and Counter-terrorist Financing Law No. 46 of 2007.

A Comprehensive Framework for Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT)

The new law introduces a more comprehensive framework for anti-money laundering (AML) and counter-terrorism financing (CFT), with a focus on enhancing regulatory oversight and improving reporting standards. The law defines money laundering as any activity that conceals or disguises the true nature, source, location, disposition, or ownership of funds derived from criminal activities.

Key Provisions

  • Money Laundering: is considered to have been committed by anyone who knowingly transfers or transports funds in order to conceal their illegal source, or assists a person who was involved in the original crime.
  • Terrorist Financing: is defined as any activity that provides or collects funds with the intention of using them to commit an act of terrorism.

Notification Obligations

The law now requires certain entities, including:

  • Lawyers
  • Legal practitioners
  • Accountants

to report suspicious transactions and maintain records of their financial activities. The law also allows for the disclosure of reports to relevant executives, compliance officers, and other parties with a legitimate interest in accessing such information.

Regulatory Oversight

The Central Bank of Jordan, the Jordanian Securities Commission, and other authorities are required to undertake various procedures to detect and prevent financial crimes, including:

  • Field inspections
  • Communication with foreign authorities
  • Retention of records and statistics

Conclusion

The Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021 represents a significant step forward in Jordan’s efforts to combat financial crimes and protect its economy from illicit activities. The law’s revised definitions, notification obligations, and reporting standards aim to enhance regulatory oversight and improve the detection and prevention of money laundering and terrorist financing.

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