Financial Crime World

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Jordan Introduces Strengthened Anti-Money Laundering and Counter Terrorist Financing Guidelines

The Hashemite Kingdom of Jordan has introduced a revised anti-money laundering (AML) and counter terrorist financing (CFT) framework through the enactment of Law No. 20 of 2021, replacing its predecessor Law No. 46 of 2007.

A More Comprehensive Regulatory Framework

The new law introduces a more comprehensive and robust regulatory framework aimed at preventing and detecting money laundering and terrorist financing activities in Jordan. The revised AML/CFT regime is designed to bring Jordan’s regulations in line with international standards and best practices.

Key Changes Under the New AML/CFT Law

  • Expanded Definition of Money Laundering: The definition of money laundering has been expanded to include the concealment or misrepresentation of the true nature, source, location, disposal mechanism, transaction record, property in, or any other rights attached to the funds in question.
  • Definition of Financing Terrorism: The financing of terrorism is defined as providing or collecting funds with knowledge that they will be used to commit an act of terror by a terrorist or terrorist organization.
  • Stricter Notification Obligations: The law introduces stricter notification obligations for entities and individuals falling under its scope, including lawyers, legal practitioners, and legal accountants arranging and/or performing financial operations on behalf of other persons and/or entities.

Increased Transparency and Scrutiny

The AML/CFT Law requires authorities to undertake a range of procedures aimed at capturing financial crime and reporting it to the relevant unit. This includes:

  • Field and Office Inspections: Regular inspections to ensure compliance with the law
  • Communication with Foreign Authorities: Collaboration with international partners to share information and best practices
  • Retention of Reports and Statistics: Maintenance of records and statistics on AML/CFT activities

Additionally, the law introduces an exception to the prohibition on disclosure of reports submitted to the AML/CFT Unit, allowing for limited disclosures in circumstances deemed commercially or legally necessary.

Commentary

A spokesperson for Al Tamimi & Company’s Banking and Finance team commented: “The revised AML/CFT framework is a significant development for Jordan, demonstrating its commitment to combating financial crime and terrorist financing. Our team regularly advises on financial agreements and transactions, and we are well-positioned to assist clients navigate the new regulations.”

Contact Information

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