With Jordan’s current digital economy and highly developed banking sectors, the country is considerably the best in the Middle East for a leading strategic financial hub. To maintain the financial system from illicit activities, Jordan further developed a strict Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regime that rigorously matches international standards, such as those of the Financial Action Task Force (FATF) and its recommendations.
What Is the AML Regulatory Framework in Jordan?
Both national legislation and regulatory decrees are Jordan’s primary AML/CFT regulators. Take a look:
Anti-Money Laundering and Counter-Terrorist Financing Law No. 46 of 2007: Amended in 2020, this law focuses on criminalizing money laundering and terrorist financing, paving the way for compliance obligations.
Instructions Issued by the Central Bank of Jordan (CBJ): Instructions and detailed requirements for financial institutions, including Due Diligence (CDD), risk profiling, and reporting protocols
Executive Instructions for Designated Non-Financial Businesses and Professions (DNFBP) - in control of the Jordanian Companies Control Department, the subjects for these instructions are lawyers, delarers in precious metals, and real estate agents.
Who Regulates AML Compliance in Jordan?
Here are some regulators that have multi-agency AML regimes:
Anti-Money Laundering and Counter-Terrorist Financing Unit (AMLU): AMLU’s tasks are collecting, analyzing, and disseminating Suspicious Transaction Reports (STRs) which help detect and prevent illicit financial activities. Hence, AMLU serves as Jordan’s National Financial Intelligence Unit (FIU).
The Central Bank of Jordan (CBJ): The CBJ’s role is to regulate banks, payment service providers, and money exchange institutions across Jordan. CBJ’s role is to make sure that financial entities follow AML and CFT regulations and secure the overall stability and trust in Jordan’s financial system.
Jordan Securities Commission (JSC): JSC assures that financial institutions across Jordan follow AML/CFT compliance. So, the JSC makes sure that banks, payment firms, and money exchange institutions are regulated through a compliance regime. These regimes help maintain the stability and integrity of Jordan’s Financial system.
Ministry of Industry and Trade / Companies Control Department: This department oversees certain non-financial businesses and professions that are most likely to be vulnerable to financial crime, like real estate agencies, auditing firms, jewelers, and others. They aim to ensure that these businesses follow anti-money laundering AML and CFT procedures. This helps reduce the risk of them being used for illicit financial activities.
What Are the Key AML Laws in Jordan?
AMl/CFT Law No. 46 of 2006: Prevents and detects money laundering and terrorist financing by forming legal obligations for financial institutions as well as non-financial businesses and professions.
Terrorism Prevention Law NO. 55 of 2006: Offers authorities more powers to investigate, detain, and prosecute individuals that are suspicious of not complying with CFT.
National Risk Assessment (2020): In partnership with the Financial Action Task Force (FATF) and the Middle East and North Africa Financial Action Task (MENAFATF), assessing Jordan’s main money laundering and terrorist financing risks. They set the guidelines for national AML/CFT priorities and strategy.
Instructions on CDD and STR Reporting (CBJ Circulars): These instructions of CDD and STR reporting effectively implement financial institutions are internally controlled, aligning with global AML/CFT standards.
Which Entities Should Follow AML Obligations in Jordan?
Banks and Financial Institutions: These services range widely. This includes holding deposits, offering loans, and managing financial transactions for businesses and individuals.
Money Exchange and Remittance Companies: These sectors help people and businesses move money safely and efficiently across borders. They snure that cross-border transactions are reliable and secure, whether it’s exchanging money safely and efficiently across borders,
Insurance and Microfinance Companies: Insurance companies provide financial protection by covering individuals and businesses against financial threats or risks. Meanwhile, Microfinance institutions focus on offering small loans and other financial services to those who (not limited to people) lack access to traditional banking.
Capital Market Participants (CMPs): Professionals and institutions who are actively involved in securities trading, investment, and capital raising through stock and bond issuance. Their main role is to ensure market liquidity, confidence of investors, and economic growth.
Virtual Asset Service Provided (VASPs): VASPs are businesses that facilitate transactions in the virtual world, most commonly cryptocurrencies, This includes exchanges and wallets providers. Under recent guidelines formed by the CBJ and the Financial Intelligence Unit (FIU), these sectors are now subject to AML/CFT compliance requirements to promote transparency and security in the fast-paced evolving sectors.
Designated Non-Financial Businesses and Professions (DNFBPs): These professions such as lawyers, real estate agents, dealers in precious metals, and stones, and auditors. Although they are not a part of the traditional financial system. They engage in financial transactions and are subject to AML and compliance regimes.
What Are the KYC Requirements in Jordan?
Regulated entities must adopt a risk-based CDD program that includes the following measurements in Jordan:
Identity Verification: Clients should be verified using official identification (national ID or passport) to ensure that they are fulfilling regulatory requirements and assuring their legitimacy,
Beneficial Ownership Identification: For corporate clients, institutions choose and document the individuals who own or control an entity to promote transparency,
Source of Funds Verifications: For high-risk or high-value clients, institutions must create the origin of funds to secure and guard against illicit financial activities,
Ongoing Monitoring: Due Diligence is not a one-time process. Institutions must consistently monitor client relationships to identify any changes in risk profiles or suspicious activity.
When is Enhanced Due Diligence (EDD) Required in Jordan?
EDD regimes are a must in higher-risk scenarios, such as:
- Politically Exposed Persons (PEPs)
- Non-residents clients
- Customers from high-risk jurisdictions
- Complex, large, or unusual transactions
In other cases, sectors must collect more additional documentation, source of wealth verification, and management-level approvals.
How Are Suspicious Transactions Monitored and Reported in Jordan?
All regulated entities are expected to follow:
Implement manual or automated transaction monitoring systems, whether manual or automated, to detect unusual or suspicious activity in real-time,
File Suspicious Transactions (STRs) with the AMLU within three business days of detecting any red flags,
Having an AML compliance officer and establishing clear reporting procedures to make sure consistency, and accountability across the organizations.
What Are the Penalties for AML Non-Compliance in Jordan?
Administrative Fines: facing financial penalties from JOD 10,000 to JOD 100,000, depending on the severity of the violation.
Criminal Penalties: Individuals who are found responsible for branching could face up to 10 years in prison.
License Revocation: Regulatory authorities have the power to revoke an institution’s license, resulting in shutting down businesses that fail to comply with regulations, which can be devastating to their operations.
Reputational Damage: Beyond legal and financial penalties, the loss of trust from customers, partners, and the public can cause lasting harm to a company’s reputation and long-term success.
Is Jordan on Any International AML Watchlists?
As of the moment, no. Jordan is not listed on the FATF greylist. However, Jordan has made measurable improvements following MENAFATF regulations and continues to strengthen its AML/CFT regime.
Sector-Specific AML Requirements in Jordan
Banks (regulated by CBJ)
- Decide board-level AML oversight,
- Use real-time transaction screening and customer risk scoring systems,
- File STRs and report large cash transactions according to regulatory procedures.
Crypto and Virtual Asset Service Providers
- Conduct thorough Customer Due Diligence (CDD),
- Comply with the Travel Ruke for crypto transfers,
- Screen wallet addresses and report to AMLU consistently,
- Monitor transaction patterns and screen all financial activities against relevant sanctions lists,
- Must submit monthly compliance reports to both the CBJ and the FIU,
- When there is a suspicious activity, it must be identified and reported as soon as possible.
DNFBS Such as Lawyers, Real Estate, High-Value Dealers, and Etc.
- Verify client identity,
- Report cash transactions above JOD 10,000,
- Retain detailed records for at least 5 years.
What Are The Recent Developments in Jordan in Terms of AML?
● In 2022, there is a launch of a national AML/CFT strategy by the Ministry of Finance, increasing national coordination against financial crime.
● In 2023, the AMLU launched an enhanced online portal for submitting STRs. This is aimed at improving usability and data handling.
● In 2024, the CBJ introduced a RegTech pilot program to apply advanced technologies into AML frameworks within banks and fintechs across Jordan.
How Can Sanction Scanner Support Your Business in Jordan?
Sanction Scanner offers comprehensive AML compliance tools tailored to Jordanian regulations, including:
Real-time client screening against global and domestic sanctions lists (UN, OFAC, etc.), Detection of PEPs and sensitive media in both Arabic and English, Crypto transaction monitoring that complies with the Travel Rule FIU-ready reporting tools for seamless integration into regulatory submission workflows.
FAQ's Blog Post
Jordan’s primary anti-money laundering legislation is the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021. It establishes the legal framework for detecting, reporting, and preventing money laundering and terrorist financing activities in the country.
The Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU), under the Central Bank of Jordan, is the designated Financial Intelligence Unit (FIU). It oversees AML compliance, collects Suspicious Transaction Reports (STRs), and coordinates with domestic and international bodies.
Yes. Jordanian financial institutions are mandated to apply Know Your Customer (KYC) procedures as part of Customer Due Diligence (CDD). These include verifying identity, monitoring account activity, and maintaining records. Enhanced Due Diligence (EDD) is required for high-risk clients.
For individuals, banks typically require a valid government-issued ID (e.g., passport or national ID) and proof of address. For corporate entities, registration documents, shareholder information, and authorized signatories’ IDs are mandatory. All data must be retained for 5 years.
Non-compliance can lead to fines, license revocation, and criminal charges. In 2023, Jordan issued financial penalties exceeding JOD 1.2 million to entities that failed to report STRs or implement adequate AML controls.
Yes. Jordan is a member of MENAFATF (Middle East & North Africa Financial Action Task Force) and has made significant efforts to align its laws and practices with FATF’s 40 recommendations, including reforms to improve beneficial ownership transparency and risk-based supervision.
No, Jordan is not currently on any international sanctions list. However, it complies with United Nations sanctions resolutions.