Financial Crime World

Jordan’s Regulatory Bodies Strengthen Anti-Money Laundering and Counter-Terrorist Financing Efforts

Amidst growing concerns over money laundering and terrorist financing, Jordan has taken significant strides in bolstering its regulatory framework to combat these illicit activities. The country’s anti-money laundering (AML) and counter-terrorism financing (CTF) efforts are overseen by various regulatory bodies, which work collectively to ensure the effectiveness of AML/CTF regulations.

Leading the Charge: Anti-Money Laundering & Counter Terrorist Financing Unit

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

Strengthened Regulations: Law No. 20 of 2021

A recent amendment to the country’s anti-money laundering law, Law No. 20 of 2021, has further strengthened Jordan’s AML/CTF regime. The revised legislation introduces:

  • Enhanced due diligence requirements for financial institutions and designated non-financial businesses and professions (DNFBPs) when dealing with politically exposed persons (PEPs)
  • Mandates that reporting entities implement comprehensive AML/CTF programs, including risk-based procedures for identifying and verifying the identity of customers, especially PEPs
  • Requires reporting entities to maintain records of customer identification and transaction data for a specified period and report suspicious activities to the Financial Intelligence Unit (FIU) or relevant authorities

Consequences for Non-Compliance

The law also outlines penalties for non-compliance, including:

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

International Cooperation and Monitoring

Jordan’s AML/CTF regime is closely monitored by international organizations, including:

  • The Financial Action Task Force (FATF)
  • The International Monetary Fund (IMF)

The country’s progress in this area is crucial not only for its own financial stability but also for the global fight against money laundering and terrorist financing.

Conclusion

Jordan’s commitment to combating money laundering and terrorist financing is evident in its efforts to strengthen its regulatory framework and enhance international cooperation. The country’s AML/CTF regime is a vital component of its anti-financial crime strategy, ensuring a safer and more stable financial environment for all stakeholders.