Jordan Strengthens Anti-Money Laundering and Counter-Terrorist Financing Framework
Amman, Jordan - A Significant Step Forward in Combating Financial Crime
The Hashemite Kingdom of Jordan has recently enacted a revised anti-money laundering (AML) and counter-terrorist financing (CFT) framework, aimed at strengthening the country’s efforts to combat financial crime. The new law replaces its predecessor, Anti-Money Laundering and Counter Terrorist Financing Law No. 46 of 2007 and its amendments.
A More Comprehensive and Robust Regulatory Framework
The revised AML/ CFT Law No. 20 of 2021 introduces a more comprehensive and robust regulatory framework. According to experts at Al Tamimi & Company’s Banking and Finance team, the new law provides for a wider scope of what constitutes money laundering and financing of terrorism, allowing for better detection and reporting of such activities.
Key Features of the New Law
- A wider scope of what constitutes money laundering and financing of terrorism
- Improved detection and reporting of financial crimes
- Revised classification of entities subject to AML/ CFT obligations
- Excludes persons or companies exercising activities supervised by the Jordan Insurance Commission
- Makes the classification more specific and targeted
- An exception to the prohibition on disclosure of reports submitted to the AML/ CFT Unit, allowing for reasonable relaxation of confidentiality in certain circumstances
Implementation and Enforcement
The authorities responsible for implementing and enforcing the AML/CFT Law include:
- Central Bank of Jordan
- Jordanian Securities Commission
- Ministry of Industry, Trade and Supply
- Telecommunications Regulatory Commission
These entities are required to undertake a range of procedures aimed at capturing financial crime and reporting it to the Unit.
Expected Impact
The revised AML/ CFT Law is expected to further strengthen Jordan’s efforts to combat money laundering and financing of terrorism, and to enhance the country’s reputation as a stable and secure hub for international trade and investment.
Contact Us
For more information on Al Tamimi & Company’s Banking and Finance team or how this law may impact your business, please contact:
- Dana Abduljaleel (D.Abduljaleel@tamimi.com)
- Hakam Al Shawwa (H.AlShawwa@Tamimi.com)