Financial Crime World

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Jordan Adopts Sweeping AML/CFT Regulatory Updates

Amidst a global push to strengthen anti-money laundering (AML) and counter terrorist financing (CFT) frameworks, Jordan has enacted the Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021, replacing its predecessor law from 2007. The new legislation introduces a more robust and comprehensive framework for AML/CFT, aligning with international standards and best practices.

Key Features of the New AML/CFT Framework

  • Expands scope of AML/CFT obligations to include lawyers, legal practitioners, and legal accountants
  • Clarifies definition of money laundering and terrorist financing, providing for more effective detection and reporting of suspicious transactions
  • Aligns with international standards and best practices

Notification Obligations Under the New Law

  • Revises classification of entities subject to AML/CFT obligations, excluding persons or companies under the supervision of the Jordan Insurance Commission
  • Limits scope of activities subject to AML/CFT obligations to specific professionals arranging and performing financial operations on behalf of others

Reporting Obligations Under the New Law

  • Prohibits disclosure of reports submitted to the AML/CFT Unit, with exceptions for:
    • Relevant executives and compliance officers
    • Intergroup disclosures between financial institutions
    • Disclosures to parties legally authorized to access such reports
  • Allows for more effective reporting and sharing of information

Regulatory Obligations Under the New Law

  • Obliges authorities, including:
    • Central Bank of Jordan
    • Jordanian Securities Commission
    • Ministry of Industry, Trade and Supply
    • Telecommunications Regulatory Commission
  • To conduct regular inspections, communicate with foreign authorities, and retain reports and statistics on AML/CFT activities

Conclusion

The new AML/CFT law in Jordan represents a significant step forward in the country’s efforts to combat money laundering and terrorist financing. The legislation’s focus on strengthening reporting and monitoring requirements, as well as its alignment with international standards, demonstrate Jordan’s commitment to maintaining a robust financial system.

For further information or advice on AML/CFT compliance and other financial matters, please contact:

  • Dana Abduljaleel
  • Hakam Al Shawwa Al Tamimi & Company’s Banking and Finance team is well-equipped to advise clients on AML/CFT compliance.