Financial Crime World

Jordan Introduces Strengthened AML Procedures for Banks

Jordan has recently introduced a revised Anti-Money Laundering and Counter Terrorist Financing Law (AML/CFT Law) to combat the growing threat of financial crimes in the country. The new law aims to enhance the regulatory framework for banks and other financial institutions, allowing them to detect and prevent money laundering and terrorist financing activities more effectively.

Key Provisions of the AML/CFT Law

  • Banks and regulated entities are required to implement robust anti-money laundering measures, including:
    • Customer due diligence
    • Transaction monitoring
    • Reporting of suspicious transactions
  • The law introduces new obligations on authorities, such as the Central Bank of Jordan, to undertake regular inspections and monitor financial activity more closely.
  • The AML/CFT Law defines money laundering as the transfer or concealment of funds with knowledge that they are proceeds of criminal activities. The crime is deemed committed whether or not the person committing it has been convicted of the underlying offence.
  • Terrorist financing is defined as providing or collecting funds knowing they will be used to commit acts of terror.

Notification Obligations

  • Banks and regulated entities are required to report suspicious transactions to the AML/CFT Unit (Unit) and maintain confidentiality of such reports. However, the law introduces an exception allowing for disclosure of reports to relevant executives, compliance officers, and authorized parties in certain circumstances.

International Cooperation

  • Jordanian authorities are working closely with international partners to combat financial crimes and prevent the misuse of the country’s financial system.
  • The AML/CFT Law is seen as a major step forward in this effort, demonstrating Jordan’s commitment to combating money laundering and terrorist financing.

Contact Us for Further Information

For further information on how the AML/CFT Law may affect your business, please contact Al Tamimi & Company’s Banking and Finance team at: