Financial Crime World

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

Amman, Jordan - In a move to bolster its efforts against financial crimes, Jordan has introduced a revised anti-money laundering (AML) and counter-terrorist financing (CFT) law. The new legislation, known as the AML/CFT Law No. 20 of 2021, replaces its predecessor, the Anti-Money Laundering and Counter-Terrorist Financing Law No. 46 of 2007 and its Amendments.

Enhanced Framework for Combating Financial Crimes

The AML/CFT Law introduces a more comprehensive framework for combating money laundering and terrorist financing, with a focus on enhanced oversight and regulation. Under the new law, any person who engages in activities that facilitate or conceal illegal financial transactions can be held liable for money laundering or terrorist financing.

Key Provisions

Definition of Money Laundering

  • The transfer, transportation, concealment, or use of proceeds from criminal activities to disguise their source or to aid individuals involved in the original crime.
  • Instances where a person knowingly engages in activities that facilitate or conceal illegal financial transactions.

Definition of Terrorist Financing

  • Prohibiting any individual who directly or indirectly provides funds for the purpose of committing acts of terrorism.
  • Situations where an individual intentionally contributes to or aids in committing terrorist financing activities with others.

Notification Obligations

  • Certain entities, including lawyers, legal practitioners, and legal accountants who engage in financial transactions on behalf of others, are required to report any suspicious transactions to the AML/CFT Unit.
  • The law permits disclosure of reports submitted to the unit under certain circumstances, such as when reporting is necessary for commercial or legal purposes.

Regulatory Framework

  • Relevant authorities, including the Central Bank of Jordan and other regulatory bodies, must conduct regular inspections and maintain records of financial transactions.
  • These measures are designed to enhance scrutiny of financial activity and prevent money laundering and terrorist financing.

Conclusion

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The introduction of the AML/CFT Law represents a significant step forward in Jordan’s efforts to combat financial crimes. The law’s provisions are aimed at strengthening oversight, enhancing regulation, and preventing illegal activities that undermine the country’s financial system.