Financial Crime World

Jordan Enacts Revised Anti-Money Laundering and Counter Terrorist Financing Law

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The Government of Jordan has introduced a revised anti-money laundering (AML) and counter terrorist financing (CFT) law, aimed at strengthening the country’s regulatory framework to combat financial crime.

Overview

The new 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. The revised law introduces a more comprehensive and robust framework for detecting and preventing money laundering and terrorist financing activities.

Key Features

Enhanced Reporting Requirements

  • Individuals and entities are required to report any suspicious transactions or activities that may be linked to financial crime.
  • The law provides for increased penalties for those found guilty of money laundering and terrorist financing, including imprisonment and fines.

Definitions

  • Money laundering is defined as the act of concealing or disguising the true nature, source, location, disposition, movement, or ownership of proceeds derived from criminal activity, or to aid another person who has committed such a crime.
  • Financing of terrorism is defined as providing or collecting funds with the knowledge that they will be used to commit an act of terror.

Regulatory Requirements

  • Financial institutions and other entities are required to implement anti-money laundering measures, including:
    • Customer due diligence
    • Transaction monitoring
    • Reporting suspicious activities
  • Authorities are obligated to conduct regular inspections and audits to ensure compliance with the law.

International Cooperation

The revised AML/CFT Law is designed to bring Jordan in line with international standards and best practices for combating financial crime, and to enhance cooperation between the country’s regulatory bodies and foreign authorities.

Implementation

  • The law takes effect immediately.
  • Existing regulations and instructions issued under the previous law will remain applicable until repealed or replaced.