Jordan Tightens Banking Compliance Rules to Boost Transparency and Stability

Jordan has introduced new banking compliance rules aimed at enhancing transparency and stability in the financial sector. The revised regulations, which come into effect immediately, are designed to curb money laundering, terrorist financing, and other illicit activities.

Strengthening International Standards

The Central Bank of Jordan Law No. 23 of 1971 has been revised to ensure stricter adherence to international standards on banking compliance. This law mandates that all banks operating in the country must implement robust anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Enhancing Transparency and Accountability

The Insurance Regulatory Law No. 12 of 2021 outlines the regulatory framework for the insurance sector in Jordan. The law requires insurance companies to maintain accurate records and provide regular reports to the regulator, boosting transparency and accountability in the industry.

Key Laws Revised

• Banking Law No. 28 of 2000 and its amendments have been revised to strengthen banking regulations.
• Money Exchange Business Law No. 44 of 2015 has been updated to enhance compliance.
• Electronic Transactions Law No. 15 of 2015 has been revised to improve transparency.
• Credit Information law - Temporary Law No. 15 of 2010 has been updated to ensure responsible lending practices.
• Central Bank of Jordan Law No. 23 of 1971 has been revised to strengthen banking compliance.

Industry Experts Welcome the Move

Industry experts welcome the new regulations, saying they will help to bolster trust in the financial sector and attract foreign investment to the country. “These laws are a significant step forward in ensuring that Jordan’s banking system is aligned with international best practices,” said a leading financial analyst. “They will help to prevent illicit activities and ensure that banks operate in a transparent and responsible manner.”

Implementation and Monitoring

The revised laws come into effect immediately, with banks and other financial institutions required to comply within the next six months. The Central Bank of Jordan has announced plans to conduct regular inspections and monitoring to ensure compliance with the new regulations.

Boost for Financial Services Hub

The move is seen as a major boost for Jordan’s efforts to become a hub for financial services in the region, and will help to attract foreign investment and talent to the country. As one leading economist noted, “These laws demonstrate Jordan’s commitment to creating a stable and transparent business environment that attracts foreign investors and promotes economic growth.”