Financial Crime World

Financial Crimes Prevention in Jordan: Regulatory Bodies and Laws in Place

Jordan has made significant strides in preventing financial crimes, including money laundering and terrorist financing. The country’s regulatory bodies and laws are designed to ensure the effectiveness of anti-money laundering (AML) compliance regulations, thereby maintaining a robust financial system.

Regulatory Bodies

The Jordan Anti-Money Laundering & Counter Terrorist Financing Unit (AMLU) is a dedicated body responsible for implementing AML and counter-terrorism financing measures in the country. The unit plays a central role in coordinating efforts to combat money laundering and terrorist financing.

Additionally, the Financial Action Task Force (MENAFATF) publishes a Mutual Evaluation Report that provides insights into Jordan’s AML/CTF regulatory framework and its compliance with international standards.

Regulatory Laws

The Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021 is the primary legislation governing AML/CTF in Jordan. The law repealed and replaced the previous Anti-Money Laundering and Counter-Terrorist Financing Law No. 46 of 2007.

Key provisions of the new law include:

  • Definition of money laundering: The law defines money laundering as the act of concealing or disguising the true nature, source, location, method of disposal, transaction record, or any other rights associated with monetary amounts.
  • Enhanced due diligence: Financial institutions and other covered entities are required to apply enhanced due diligence measures when dealing with politically exposed persons (PEPs).
  • Reporting obligations: Reporting entities, including banks, financial institutions, and designated non-financial businesses and professions (DNFBPs), must implement comprehensive AML/CTF programs that include risk-based procedures for identifying and verifying the identity of customers, especially PEPs.
  • Record-keeping: Reporting entities must maintain records of customer identification and transaction data for a specified period.

Penalties for Non-Compliance

The law outlines penalties for non-compliance, including fines, sanctions, or criminal charges against individuals or entities that fail to adhere to AML/CTF obligations.

Conclusion

Jordan’s regulatory bodies and laws are designed to prevent financial crimes and maintain a robust financial system. The country’s commitment to combating money laundering and terrorist financing is evident in the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021, which strengthens oversight and reinforces global regulatory measures.

References:

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