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Jordanian Banks Must Comply with Stricter Anti-Money Laundering Regulations

Amman, Jordan - The Kingdom of Jordan has implemented stricter anti-money laundering (AML) and counter-terrorist financing (CTF) regulations for banks and financial institutions. These new laws aim to prevent money laundering and terrorist financing activities within the country’s financial system.

The Role of the Anti-Money Laundering & Counter Terrorist Financing Unit

The Jordan Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU), a dedicated unit responsible for implementing AML and CTF measures in Jordan, plays a central role in coordinating efforts to combat money laundering and terrorist financing. The unit is overseen by the Governor of the Central Bank of Jordan.

Key Provisions of the Anti-Money Laundering and Counter Terrorist Financing Law

According to the revised Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021, financial institutions are required to implement comprehensive AML/CTF programs that include:

  • Risk-based procedures for identifying and verifying the identity of customers, especially politically exposed persons (PEPs)
  • Enhanced due diligence measures when dealing with PEPs

The law defines PEPs as individuals who hold prominent public positions, such as government officials, heads of state, judges, and high-ranking military officers, as well as their immediate family members and close associates.

Reporting Obligations

Reporting entities, including banks, financial institutions, and designated non-financial businesses and professions (DNFBPs), are obligated to:

  • Maintain records of customer identification and transaction data for a specified period
  • Report suspicious transactions to the Financial Intelligence Unit (FIU) or relevant authorities

Penalties for Non-Compliance

The law outlines penalties for non-compliance, which may include:

  • Fines
  • Sanctions
  • Criminal charges against individuals or entities that fail to adhere to AML/CTF obligations

What You Need to Know

  • Jordanian banks and financial institutions must comply with new anti-money laundering regulations
  • The regulations aim to prevent money laundering and terrorist financing activities within the country’s financial system
  • Financial institutions must implement comprehensive AML/CTF programs that include risk-based procedures for identifying and verifying customer identity, especially PEPs
  • Reporting entities must maintain records of customer identification and transaction data and report suspicious transactions
  • Non-compliance may result in fines, sanctions, or criminal charges

Sources

  • Al Tamimi & Co, Anti-Money Laundering & Counter Terrorist Financing Unit