Regulatory Alerts2019-04-02
Added · Updated
Circular No. 1 of 2019 Regarding the Implementation of the Central Bank of Jordan's Anti-Money Laundering and Countering the Financing of Terrorism Regulations
The Central Bank of Jordan mandates supervised financial institutions to implement the 2018 Anti-Money Laundering and Countering the Financing of Terrorism Regulations by establishing internal controls, compliance functions, and risk assessment procedures. These institutions are required to conduct customer due diligence, monitor transactions, maintain records, and promptly report suspicious activities to the Financial Intelligence Unit. Additionally, supervised institutions must provide adequate training to employees on anti-money laundering and counter-terrorist financing procedures. The circular takes effect from the date of its publication in the Official Gazette.
Circular No. 1 of 2019
Regarding the Implementation of the Central Bank of Jordan's Anti-Money Laundering and Countering the Financing of Terrorism Regulations
The Central Bank of Jordan, pursuant to the powers conferred upon it by the Central Bank of Jordan Law No. (1) of 2018, and in light of the need to implement the Anti-Money Laundering and Countering the Financing of Terrorism Regulations of 2018, has issued this circular.
- Definitions
In the context of this circular, the following terms shall have the meanings set forth below:
(1) The Regulations: The Anti-Money Laundering and Countering the Financing of Terrorism Regulations of 2018.
(2) The Bank: The Central Bank of Jordan.
(3) Supervised Institutions: Financial institutions supervised by the Bank.
(4) Suspicious Transaction: Any transaction that the supervised institution suspects or has reasonable grounds to suspect is related to money laundering or terrorist financing.
- Implementation of the Regulations
Supervised institutions shall implement the provisions of the Regulations and establish appropriate internal controls, risk assessment procedures, and compliance functions to prevent money laundering and terrorist financing. This includes:
a) Establishing a compliance function within the institution responsible for monitoring compliance with anti-money laundering and counter-terrorist financing laws and regulations.
b) Conducting regular risk assessments to identify and mitigate risks related to money laundering and terrorist financing.
c) Implementing customer due diligence measures, including identifying and verifying the identity of customers and beneficial owners.
d) Monitoring transactions and reporting suspicious transactions to the relevant authorities.
e) Maintaining comprehensive records of transactions and customer information for the periods prescribed by law.
- Reporting Obligations
Supervised institutions shall report any suspicious transactions to the Financial Intelligence Unit (FIU) or other relevant authorities as required by law. Such reports shall be made promptly upon suspicion arising.
- Training and Awareness
Supervised institutions shall provide adequate training to their employees on anti-money laundering and counter-terrorist financing procedures, including the identification of suspicious transactions and the reporting obligations.
- Effective Date
This circular shall take effect from the date of its publication in the Official Gazette.
Issued in Amman, on this day: 14/04/1440 H corresponding to 19/01/2019 G.
Central Bank of Jordan
Contact Information: Email: info@cbj.gov.jo Website: www.cbj.gov.jo Phone: 4639730, 4638889, 9/4630301 Fax: 4630301 Address: P.O. Box 118, Amman, Jordan