Financial Crime World

Jordan’s Regulatory Bodies Tighten Grip on Financial Crimes

Amidst growing concerns over money laundering and terrorist financing, Jordan has reinforced its regulatory framework with the introduction of the Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021 (AML/CFT Law). The new legislation aims to strengthen oversight and penalties for financial crimes.

Definition of Money Laundering

According to Article 3 of the AML/CFT Law, money laundering is deemed committed by any person who knowingly:

  • Transfers or transports proceeds of criminal activities to misrepresent or conceal their illegitimate source
  • Conceals or misrepresents the true nature, source, location, disposal mechanism, transaction record, property in, or any other rights attached to such moneys

Definition of Terrorist Financing

The law also defines terrorist financing as:

  • Providing funds with knowledge that they will be used for terrorism-related activities
  • Direct or indirect provision of funds
  • Intentional contribution to committing terrorism financing
  • Contributing to the travel of persons to countries for terror-related purposes

Notification Obligations

Under the AML/CFT Law, notification obligations have been revised to limit its scope to specific entities such as:

  • Lawyers arranging financial operations on behalf of others
  • Legal practitioners and legal accountants

The law also relaxes reporting standards by allowing disclosure to:

  • Relevant executives
  • Compliance officers
  • Intergroup disclosures between financial institutions
  • Parties legally authorized to access reports

Obligations of Authorities

Authorities including the Central Bank of Jordan, the Jordanian Securities Commission, the Ministry of Industry, Trade and Supply, and the Telecommunications Regulatory Commission are obligated to:

  • Conduct field and office inspections
  • Communicate with foreign authorities
  • Retain reports and statistics on information gathered under the AML/CFT Law

Comprehensive Framework

The new legislation aims to provide a more comprehensive framework for combating money laundering and terrorist financing. While it builds upon existing regulations, the AML/CFT Law introduces significant improvements and increased scrutiny of financial activity to counter these crimes more effectively.

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