Anti-Money Laundering and Counter-Terrorist Financing Law No. (20) of 2021

The Law criminalises money laundering, including the conversion, transfer, concealment of the true nature or source of, acquisition, use or management of funds, with knowledge that they are proceeds of a predicate offence, in the circumstances and subject to the conditions specified therein. A predicate offence includes any felony or misdemeanour punishable under applicable legislation. Proof that funds are proceeds of crime does not require a conviction of any person for the predicate offence.

The Law also criminalises terrorist financing, which includes the direct or indirect provision or collection of funds, with knowledge that they will be used, in whole or in part, to commit a terrorist act or by a terrorist individual or organisation. The offence of terrorist financing is established under the Law even if the terrorist act is not committed or the funds are not actually used to carry it out.

Reporting entities include financial institutions, such as banks and money exchange and money transfer companies, entities operating in the securities and insurance sectors, and entities carrying out the financial activities specified in Article (14) of the Law. They also include designated non-financial businesses and professions, such as persons engaged in real estate trading and development, and dealers in precious metals and precious stones.

The scope of these obligations also extends to lawyers, other legal professionals, and certified public accountants when preparing for or carrying out certain transactions on behalf of their clients, including specified activities relating to the establishment or management of legal persons. The Council of Ministers may also, upon the recommendation of the Chair of the National Committee, apply the provisions of the Law to other entities, professions, or activities.

Reporting entities are required to identify, assess and monitor the money laundering and terrorist financing risks associated with their customers, services and transactions, and to adopt policies and procedures proportionate to the nature, size and risk level of their activities. This includes conducting customer due diligence to verify customer information and identify the Beneficial Owner, meaning the natural person who ultimately owns or effectively controls the customer, directly or indirectly.

Simplified or enhanced due diligence measures must be applied according to the results of the risk assessment and the instructions issued for this purpose. Enhanced due diligence is required in specified high-risk situations or where money laundering or terrorist financing is suspected. Reporting entities are prohibited from opening or maintaining anonymous accounts or accounts under fictitious names, or from dealing with unidentified persons.

Reporting entities must retain records of domestic and international transactions, together with the information necessary to identify them, for at least five years from the date of completion of the transaction. They must also retain customer due diligence records, account files, correspondence and analysis results for at least five years from the end of the business relationship or the completion of the transaction, whichever is later. Records must be kept up to date and made available to the competent authorities in accordance with the Law.

Reporting entities must promptly report to the Anti-Money Laundering and Counter-Terrorist Financing Unit any transaction, activity or attempted transaction where suspicion or reasonable grounds for suspicion exist, regardless of the transaction value. Disclosure of the fact that a report has been filed, or of any related information, is prohibited except in cases permitted by the Law.

The National Committee is chaired by the Governor of the Central Bank of Jordan. It is responsible for formulating public policy, approving national-level risk assessment procedures, and enhancing coordination among the relevant authorities.

The Law also provides for a Unit with financial and administrative independence, reporting to the Governor. The Unit is responsible for receiving relevant reports and information, analysing them, requesting the necessary data and documents, and exercising its other powers as prescribed by the Law.

Regulatory and supervisory authorities, including the Companies Control Department within its jurisdiction, monitor reporting entities’ compliance with the Law and the instructions issued pursuant thereto. They may conduct desk-based and on-site inspections and impose the measures and sanctions prescribed by the Law in the event of violations. These may include requiring corrective action, suspending certain activities, imposing fines, or suspending or revoking a licence, depending on the nature of the violation and the applicable conditions.

The Law prescribes penalties for money laundering and terrorist financing offences, including temporary imprisonment with hard labour, fines, and confiscation of proceeds and instrumentalities associated with the offence. It also governs the liability of legal persons where an offence is committed through those responsible for their actual management or persons authorised to exercise authority within them, in the specified circumstances, in addition to the liability of natural persons.

The Law contains provisions for implementing relevant United Nations Security Council resolutions and freezing, without delay or prior notice, the funds and economic resources of listed persons, groups and entities, in the circumstances specified therein. It also regulates information exchange, judicial cooperation and mutual legal assistance in relation to money laundering offences, associated predicate offences, and terrorist financing.

For detailed provisions and the scope of obligations applicable to each entity, please refer to the full text of the Anti-Money Laundering and Counter-Terrorist Financing Law No. (20) of 2021, together with the regulations, instructions and decisions issued pursuant thereto.