Central Bank of Jordan Circular No. 2253 of 2015 Regarding Combating Money Laundering and Terrorist Financing

Central Bank of Jordan Circular No. 2253 of 2015 Regarding Combating Money Laundering and Terrorist Financing

The Central Bank of Jordan, in accordance with the provisions of the Anti-Money Laundering and Combating the Financing of Terrorism Law No. (20) of 2014, and to implement the recommendations of the Financial Action Task Force (FATF) and the Middle East and North Africa Financial Action Task Force (MENAFATF), issues this circular to regulate the procedures for combating money laundering and terrorist financing within the banking sector.

1. Definitions

For the purposes of this circular, the terms listed below shall have the meanings assigned to them herein:

1.1. Money Laundering: The process by which criminals disguise the illegal origin of their proceeds to make them appear legitimate.

1.2. Terrorist Financing: The act of providing or collecting funds, directly or indirectly, with the intention that they should be used or in the knowledge that they are to be used, in full or in part, to commit terrorist acts.

1.3. Terrorist Financing Activities (TFAs): Any act that constitutes an offense under the laws and regulations related to the suppression of terrorist financing.

2. Scope of Application

This circular applies to all banks and financial institutions supervised by the Central Bank of Jordan.

3. Obligations of Banks and Financial Institutions

Banks and financial institutions shall implement the following measures:

3.1. Customer Due Diligence (CDD)

Banks must identify and verify the identity of their customers and beneficial owners before establishing a business relationship or executing occasional transactions above the prescribed threshold.

3.2. Enhanced Due Diligence (EDD)

Enhanced due diligence measures must be applied to high-risk customers, including:

• Politically Exposed Persons (PEPs).
• Customers from high-risk jurisdictions.
• Complex or unusually large transactions.

3.3. Record Keeping

Banks must keep records of all transactions, whether single or linked, for at least ten years from the date of the transaction or the end of the business relationship.

3.4. Reporting Suspicious Transactions

Banks must report any suspicious transactions to the Financial Intelligence Unit (FIU) immediately upon detection. Failure to report may result in legal penalties.

3.5. Internal Controls and Training

Banks must establish internal policies, procedures, and controls to prevent money laundering and terrorist financing. Staff must undergo regular training on these issues.

4. Prohibited Activities

Banks are prohibited from:

• Engaging in shell banking.
• Corresponding with shell banks.
• Providing anonymous accounts or accounts in fictitious names.

5. Sanctions

Non-compliance with this circular may result in administrative fines, suspension of licenses, or other regulatory actions as per the relevant laws.

6. References

This circular references the following FATF documents:

• Emerging Terrorist Financing Risks.
• Financing of the terrorist organisation ISIS.
• Recommendations on Sanctions and TF.
• Terrorist Financing Actions Taken by FATF.

For further information, please visit: www.cbj.gov.jo www.amlu.gov.jo

Issued in Amman, 2015 Central Bank of Jordan