Financial Crime World

Here is the rewritten article in Markdown format:

Jordan’s New Banking Compliance Regulations: An Overview of the AML/CFT Law

Amman, Jordan - In a move aimed at strengthening its stance against money laundering and terrorist financing, Jordan has enacted the Anti-Money Laundering and Counter Terrorist Financing Law No. (20) of 2021, replacing its predecessor law from 2007.

Comprehensive Framework for AML/CFT

The new law introduces a more comprehensive framework for anti-money laundering (AML) and countering terrorist financing (CFT), with a focus on improving oversight and accountability in the financial sector. The AML/CFT Law sets out to capture a wider range of financial crimes and increase scrutiny of financial activity, making it easier to detect and prevent money laundering and terrorist financing.

Key Provisions

  • Money laundering is defined as any action taken by an individual or entity with knowledge that the funds are derived from criminal activities.
    • Transferring, concealing, or misrepresenting the source of such funds
    • Using or possessing them for personal gain
  • Specific notification obligations for entities and individuals falling under its scope:
    • Lawyers, legal practitioners, and legal accountants arranging and/or performing financial operations on behalf of other persons and/or entities

Exception to Disclosure Prohibition

The AML/CFT Law introduces an exception to the prohibition on disclosing reports submitted to the AML/CFT Unit, allowing for limited disclosure in certain circumstances.

Obligations on Authorities

  • The law places obligations on authorities, including:
    • Central Bank of Jordan
    • Jordanian Securities Commission
    • Others
    • Undertaking a range of procedures aimed at detecting and reporting financial crimes

Expert Analysis

Experts say that the new law represents a significant improvement over its predecessor, providing a more robust framework for combating money laundering and terrorist financing.

“The AML/CFT Law takes a constructive approach, building on and improving the existing framework,” said Dana Abduljaleel, Partner at Al Tamimi & Company’s Banking and Finance team.

For Further Information

For further information or guidance on financial agreements and transactions, please contact: