Jordan Introduces Enhanced Financial Sanctions Framework to Combat Money Laundering and Terrorist Financing
The Jordanian government has recently enacted the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021, aimed at strengthening its efforts in combating money laundering and terrorist financing.
Strengthening the Fight Against Financial Crimes
The new law replaces its predecessor, the Anti-Money Laundering and Counter-Terrorist Financing Law No. 46 of 2007, and introduces a more comprehensive framework for anti-money laundering (AML) and counter-terrorism financing (CFT). The law defines money laundering as any activity that conceals or misrepresents the source of proceeds from criminal activities, including those who have not been convicted of the underlying crime.
Enhanced Penalties for Terrorist Financing
The law also provides severe penalties for those who engage in terrorist financing activities, defined as directly or indirectly providing funds to a terrorist organization.
Notification Obligations
The new law introduces revised notification obligations for entities subject to AML/CFT regulations. These include:
- Lawyers and legal practitioners who arrange and perform financial operations on behalf of other persons and/or entities
- Legal accountants who perform similar activities
Exceptions are provided for confidentiality requirements, allowing disclosures to relevant executives, compliance officers, and parties legally authorized to access such reports.
Reporting Requirements
The law obligates authorities, including the Central Bank of Jordan, the Jordanian Securities Commission, and others, to:
- Undertake various procedures aimed at capturing financial crime and reporting it to the AML/CFT Unit
- Conduct field and office inspections
- Communicate with foreign authorities
- Retain reports and statistics on information gathered under the law
International Cooperation
The new law enhances Jordan’s ability to combat money laundering and terrorist financing, strengthening its international cooperation in this regard.
Conclusion
In conclusion, the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021 is a major step forward in Jordan’s efforts to combat financial crimes and strengthen its international cooperation. The law provides for severe penalties for those who engage in money laundering and terrorist financing activities, and introduces revised notification obligations and enhanced reporting requirements.
Contact Us
For further information on this topic, please contact:
- Dana Abduljaleel at [D.Abduljaleel@tamimi.com]
- Hakam Al Shawwa at [H.AlShawwa@Tamimi.com]
Members of Al Tamimi & Company’s Banking and Finance team.