Financial Crime World

Financial Crime Prevention Measures in Jordan: Regulatory Bodies and Legal Framework

Jordan has made significant strides in preventing financial crimes such as money laundering and terrorist financing. The country has established various regulatory bodies responsible for implementing anti-money laundering (AML) and counter-terrorist financing (CTF) measures.

Key Players in Financial Crime Prevention

  • Jordan Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU): A dedicated unit that coordinates efforts to combat money laundering and terrorist financing, working closely with regulatory departments such as the Central Bank of Jordan to ensure compliance with international standards.
  • Financial Action Task Force (MENAFATF): Conducted a mutual evaluation report on Jordan’s AML/CTF regime, highlighting the country’s progress in implementing effective measures to prevent financial crimes.

Jordan’s Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021 sets out severe penalties for anyone involved in money laundering or terrorist financing, including fines and criminal charges.

  • Definition of Money Laundering: Any action taken to conceal the source, nature, location, method of disposal, or transaction record of funds.
  • Enhanced Due Diligence Measures: Financial institutions and other covered entities must apply enhanced due diligence measures when dealing with politically exposed persons (PEPs), including conducting more thorough customer due diligence.

Reporting Requirements

Reporting entities, including banks and financial institutions, are required to implement comprehensive AML/CTF programs, which must include:

  • Risk-Based Procedures: Identifying and verifying the identity of customers based on risk assessments.
  • Record Keeping: Maintaining records of customer identification and transaction data for a specified period.

Conclusion

Jordan has implemented robust measures to prevent financial crimes, including money laundering and terrorist financing. The country’s regulatory bodies and legal framework are designed to ensure compliance with international standards and protect its financial system from illicit activities.

References:

  • Al Tamimi & Co
  • Anti Money Laundering & Counter Terrorist Financing Unit