Amendment to the Anti-Money Laundering Law Strengthens the Legal System and Protects Confidence in the National Economy

Lawyer Ayman Saad Bani Nasr Al-Khatib said that the amendment does not come to establish a new system for combating money laundering, but rather to develop the existing system, close gaps, and keep pace with modern patterns of financial crimes.

He explained that the importance of the amendment lies in enhancing the ability of the competent authorities to detect suspicious financial operations and trace funds obtained from crimes, as well as enhancing cooperation and information exchange in crimes of a cross-border nature.

He added that combating money laundering is linked to a wide range of predicate crimes, including corruption, fraud, tax evasion, drug trafficking, organized crime, and financing terrorism, making the tracking of financial proceeds from these crimes a fundamental part of the combat system.

Al-Khatib pointed out that the cross-border nature of financial crimes imposes on national legislation to keep pace with international developments, especially with the speed of money transfer through financial and electronic systems, noting that updating the legislation enhances the ability of regulatory and executive authorities to deal with risks and cooperate with peer authorities in other countries.

He pointed out that the development of the legislative and institutional framework also comes within the context of Jordan's preparation for the mutual evaluation round in the field of combating money laundering and financing terrorism and the proliferation of armament, affirming that the goal is not limited to responding to international evaluation requirements, but extends to protecting the integrity of the financial system and the national economy and preventing the use of financial and economic institutions to hide illicit funds or pass them through.

On the economic side, financial and economic expert Dr. Muhammad Al-Hadab Al-Sarhan said that the amendment to the law should be read as part of protecting the financial infrastructure of the Jordanian economy, not just a regulatory or legal measure, especially in light of the Jordanian economy's association with trade, investment, remittances, and the banking sector.

He explained that the strength of the anti-money laundering system is linked to the confidence of financial institutions and international investors in the safety of the financial environment, noting that Jordan has made progress in developing its system for combating money laundering and financing terrorism, and was removed in October 2023 from the list of countries under increased surveillance by the Financial Action Task Force (FATF).

According to Al-Sarhan, updating the legislation represents a continuation of the path of developing the financial system, especially since legitimate money flows to the Kingdom constitute an important element of the national economy; remittances of workers to the Kingdom during the first seven months of this year amounted to about $2.97 billion, while remittances to non-Jordanian workers amounted to about $1.14 billion during the same period, according to data from the Central Bank of Jordan.

He pointed out that the expansion of money and investment movement makes the existence of an effective anti-money laundering system important to maintain the integrity of financial channels and reduce the risks associated with cross-border transactions.

In the same context, data from the Ministry of Investment showed an increase in foreign direct investment in Jordan by 27.7 percent during the first three quarters of 2025, reaching about $1.52 billion.

Al-Sarhan explained that the international investor does not only look at incentives and operating costs, but is also interested in the safety of the financial system, clarity of ownership and the real beneficiary, the level of supervision, and risk management, which makes the strength of the anti-money laundering system part of the investment environment.

He added that protecting banking relations with foreign financial institutions represents another aspect of the importance of the update, explaining that the strength of the banking sector is not only related to solvency and liquidity indicators, but also to the quality of compliance systems and risk management.

Available banking data indicates the robustness of the banking sector indicators; the capital adequacy ratio reached about 18 percent, while the legal liquidity ratio reached 142.4 percent according to published data on the banking sector.

Al-Sarhan pointed out that the challenge is not so much about increasing regulatory measures as it is about raising the quality of supervision and applying a risk-based approach, so that supervision is concentrated on the highest-risk activities, clients, and transactions, while avoiding burdening legitimate transactions with unnecessary burdens and procedures.

He emphasized the importance of employing technology and data analysis in developing compliance systems, which contributes to facilitating the movement of legitimate funds on the one hand, and enhancing the ability of the competent authorities to detect suspicious operations on the other hand.

In this context, the importance of protecting the integrity of the Jordanian financial system is highlighted with the expansion of the volume of financial flows and foreign reserves; foreign reserves at the Central Bank of Jordan reached about $28.38 billion in August 2026, according to the latest published data.

According to the legal and economic visions, combating money laundering is no longer a legal file separate from the economy, but is linked to the integrity of the financial sector, investor confidence, and the smoothness of international financial transactions.

The final text of the amended law is expected to accurately determine the nature of the obligations that may arise for entities subject to its provisions, as the draft law in its current stage does not necessarily mean imposing specific new obligations before the final text is issued and comes into force.

According to Al-Khatib, the importance of the project lies in updating the state's tools to face a crime that is constantly evolving, while Al-Sarhan believes that the success of the amendment economically is linked to its ability to achieve a balance between facilitating the movement of legitimate capital and tightening control over illicit funds.

The development of the anti-money laundering and counter-terrorism financing law is part of a broader path to update the legal and supervisory system, keep pace with international standards, and enhance the ability of the Jordanian financial system to deal with the risks of cross-border financial crimes, while maintaining the efficiency of legitimate money and investment movement.