Jordan’s War on Terror: Strengthening Anti-Money Laundering and Counter-Terrorist Financing Laws
Jordan has taken a significant step forward in combating terrorism financing and money laundering by enacting the Anti-Money Laundering and Counter-Terrorist Financing Law No. (20) of 2021, replacing its predecessor from 2007.
Defining Money Laundering
The revised framework defines money laundering as any transaction or activity aimed at concealing the source, location, or nature of criminal proceeds. This includes:
- Earning
- Using
- Managing
- Investing
- Possessing such funds
It is not necessary for the person committing money laundering to be convicted of the original crime.
Defining Terrorist Financing
The law also tackles terrorist financing by defining it as the provision of funds with knowledge that they will be used to commit acts of terror. This can include:
- Direct funding
- Indirect funding
- Unintentional contributions to terrorism
Notification Obligations under the New Law
Article 14 of the AML/CFT Law revises the classification of entities subject to AML/CFT obligations, excluding insurance companies now supervised by the Central Bank of Jordan. The law also limits the scope of activities covered under AML/CFT reporting, focusing on:
- Lawyers
- Legal practitioners
- Accountants arranging financial operations
Additionally, the new law allows for exceptions to confidentiality when disclosing reports to relevant executives, compliance officers, or parties legally authorized to access such information.
Strengthening Regulations and Oversight
The new law also introduces measures to enhance scrutiny of financial activities and strengthen regulations to combat money laundering and terrorist financing more effectively. These include:
- Conducting field and office inspections
- Communicating with foreign authorities
- Retaining reports on financial crime activity gathered under the AML/CFT Law
These measures will allow Jordanian authorities to better capture and monitor illicit financial activity, making it a leading role in international efforts to combat these pressing threats.
Conclusion
The new AML/CFT Law represents a significant step forward in Jordan’s fight against terrorism financing and money laundering. By building upon and improving the previous framework, Jordan is better equipped to combat these threats effectively. With its strengthened oversight model and regulatory safeguards, Jordan is poised to play a leading role in international efforts to combat these pressing threats.