Financial Crime World

Revised Framework for Anti-Money Laundering and Counter Terrorist Financing Regulations in Jordan

The Hashemite Kingdom of Jordan has introduced a revised framework under Law No. 20 of 2021 to strengthen its anti-money laundering (AML) and counter terrorist financing (CFT) regulations.

Overview

The new law repeals and replaces the Anti-Money Laundering and Counter Terrorist Financing Law No. 46 of 2007 and its amendments, introducing a more comprehensive and robust oversight model that aligns with global standards in AML/CFT regulations.

Key Provisions

  • Definition of Money Laundering and Terrorist Financing: The law defines money laundering as any person who knows that the funds in question are proceeds of criminal activities.
  • Notification Obligations: Entities subject to AML/CFT regulations must notify authorities of suspicious transactions, including:
    • Transferring or transporting funds to conceal their illegitimate source
    • Failing to report suspicious transactions

Entities Subject to AML/CFT Regulations

The law revises the classification of entities to which AML/CFT obligations apply, excluding persons and companies supervised by the Jordan Insurance Commission. The scope of activities covered by AML/CFT regulations is limited to:

  • Lawyers arranging and/or performing financial operations on behalf of other persons or entities
  • Legal practitioners arranging and/or performing financial operations on behalf of other persons or entities
  • Legal accountants arranging and/or performing financial operations on behalf of other persons or entities

Disclosure Exception

The law introduces an exception to the prohibition on disclosing reports submitted to the AML/CFT Unit, allowing for disclosure:

  • To relevant executives and compliance officers
  • For intergroup disclosures between financial institutions within a single group
  • To parties legally authorized to access such reports

Obligations of Authorities

Authorities, including:

  • Central Bank of Jordan
  • Jordanian Securities Commission
  • Ministry of Industry, Trade and Supply
  • Telecommunications Regulatory Commission

are obligated to undertake various procedures aimed at capturing financial crime and reporting it to the AML/CFT Unit. These include:

  • Field and office inspections
  • Communication with foreign authorities that supervise financial crime
  • Retention of reports and statistics on information gathered pursuant to the AML/CFT Law

Effective Date

The revised framework comes into effect immediately, with regulations and instructions issued under the repealed AML/CFT Law remaining applicable until otherwise repealed or replaced.

Contact Us

For further information on this topic, please contact: