KYC.IO

Global Regulations and Requirements for KYC Onboarding
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KYC to onboard domestic persons

nationalitypermanent addresspassportidentity card

KYC to onboard international persons

nationalitypermanent addresspassportidentity card

corporate requirements

identificationlegal statusdomicile of the legal personregistration numbertax registry numbernationality identificationphone number

National ID card name

بطاقة شخصية (Personal card)

Does the country have Esignature Laws?

Electronic Transactions Law

E-sig law files

What year did the relevant AML laws and regulations become effective?

2007

Further details on AML regime

The Anti-Money Laundering and Counter Terrorist Financing Law (“AMLCTFL”) came into force in 2007. The date the law became effective is different across the industry.

Who is the regulator for AML controls for Banking

Central Bank of Jordan

Link to site

http://www.cbj.gov.jo/

Other financial Services

Jordan Securities Commission regulates financial services companies, custodians, mutual investment companies, mutual funds and has issued the Anti-Money Laundering Instructions In Securities

Website of Regulator

http://www.jsc.gov.jo/Public/English.aspx?Lang=3&Page_ID=1784

Financial Sector regulator

N/A

Practical Guidance for AML

Yes, please refer to the following link which provides guidance on AML requirements

Practical guidance PDF's

instructionsguidelinesforantimoneylaunderin.aspx

Is there a requirement to verify the identity of customers retroactively?

No.

Retroactive details

No.

Has the country been the subject of FATF mutal evaluation in the last 3 years?

As a result of the Middle East and North Africa FATF Mutual Evaluation Report on Jordan published on 19 May 2009, Jordan was placed under the regular follow-up process and Most recently the Third Follow-Up Report for Jordan was published on 30 Apr 2013

PDF of FATF review

Are there minimum transaction thresholds (Y/N)

Yes

More details on minimum transaction thresholds.

Yes, if the value of a transaction does not exceed JOD10,000 (approx. USD14,090) or the equivalent in foreign currency

What are the requirements for customer identification information for individuals

Banking Natural Persons: Identification data shall include the full name of the customer, nationality, permanent address, phone number, work address, type of activity, purpose of business relationship and its intended nature, names and nationalities of persons authorised to manage the account and any other information the bank deems necessary. With regard to legally unqualified persons, such as minors, documents of their legal representatives who manage such accounts shall be obtained and in case a person deals with the bank on behalf of the customer, a notarised power of attorney or a bank authorisation shall be obtained and kept in addition to verifying the identity of the proxy. Insurance Natural persons: Identification data shall include the full name of the customer, nationality, date and place of birth, national number for Jordanian nationals and the passport number for non-nationals, current permanent residential address, purpose of the business relationship and its nature and any other information the company considers necessary. Regarding persons without mental capacity, the company shall have the documents relating to them and to the persons who represent them legally, as the case may be.

Details to be Collected on Corporates

Banking Legal persons: Identification data shall include the name of the legal person, legal status, name of owners and their shares, the authorised signatories, domicile of the legal person, line of business, capital, registration date and number, tax number, national identity number of the organisation, names and nationalities of signatories authorised to run the account, phone numbers, purpose of the business relationship and its nature so the bank is aware of the ownership structure and the provisions governing the powers to take binding decisions for the legal person and any other information the bank deems necessary. The bank should obtain the required documents indicating an authorisation by the legal person to natural persons to run the account as well as identifying the authorised persons. Public shareholding companies are excluded for the request for names of owners and their shares; instead it is adequate to obtain a list of shareholders whose shares exceed 10% of the capital. Insurance Legal persons: Identity data shall include the name of the legal person, legal status, location address, type of activity, capital, date and number of registration with the competent entities including tax number, phone numbers, purpose of the business relationship and its nature, names and addresses of owners and their shares, the authorised signatories, binding authority of the legal person or legal arrangement so that the company is aware of the ownership structure and the provisions governing the powers to take binding decisions for the legal person and any other information the company deems necessary. Companies should obtain the required documents indicating an authorisation by the legal person to the natural persons to represent it, the nature of their relation with the legal person, and identify their identity and their activities according to the procedures of identifying the identity and the activities of the customer. The company shall be sure that there is no legal bar that prevents transacting with them and obtain their signatures

What are the high level requirements around beneficial ownership (identification and verification)?

Banking: Banks are required to request each customer to provide a written declaration in which he/she determines the identity of the beneficial owner of the intended transaction. Such declarations shall contain the identification data of the customer. The bank shall verify the identity of the beneficial owner by using data or information obtained from official documents to verify the identity of the beneficial owner. Where the beneficial owner is a legal person, reasonable procedures shall be taken to verify the ownership structure and the controlling management of the legal person by using data or information obtained from official documents to verify the identity of the beneficial owner. Insurance: Procedures for identifying the identity of the beneficial owner shall take into consideration the following: a) taking appropriate procedures for verifying the identity of the beneficial owner. This includes viewing data and information obtained from official documents and data until the company is satisfied that it knows who the beneficial owner is; b) requesting the customer to submit a written declaration to specify the identity of the beneficial owner. The declaration shall contain at least the identification data of the customers identity; and c) obtaining information about provisions regulating the business of the legal person including its ownership structure and the controlling management of it.

What circumstances are enhanced customer due diligence measures required?

Banking: The Central Bank of Jordan has the right to determine the transactions or customers who may be subject to simplified customer due diligence procedures when identifying and verifying the identity of the customer and the beneficial owner. This should be limited by international standards, recommendations and best practices that determine customers or transactions of low risk and any international controls or local requirements in this respect. Simplified customer due diligence procedures are prohibited whenever there are suspicions of money laundering or terrorist financing transactions, or whenever high risk circumstances occur. Insurance: The company may simplify the procedures of identifying and verifying the customer, his activity and the beneficial owner in the following cases: a) dealing with financial institutions which are subject to certain procedures for anti-money laundering and counter terrorist financing similar to the procedures mentioned in these Instructions and the decisions issued by virtue thereof, including FATF recommendations, where implementation is subject to supervision; b) dealing with public shareholding companies that are subject to regulatory disclosure requirements; c) dealing with ministries and government departments and institutions; d) dealing with customers residing in another country if such country is sufficiently applying the international standards for anti-money laundering and counter terrorist financing, including the FATF recommendations; e) insurance policies for pension schemes if the policy cannot be used as collateral and there is no surrender clause; f) life insurance policies where the annual premium is no more than JOD1,000 (approx. USD1,410) or a single premium of no more than JOD2,000 (approx. USD2,820); and g) general insurance business where a single premium or total annual premiums do not exceed the amount of JOD3,000 (approx. USD4,230).

How should FI's deal with Politically exposed persons

Banking: In the case of PEPs the following enhanced due diligence should be performed: a) the approval of the bank’s general manager, regional manager, or the person authorised thereby shall be obtained when commencing a relationship with these customers. Such approval shall also be obtained when a customer or a beneficial owner is discovered to be a PEP; b) the bank shall take all necessary procedures to verify the source of the wealth of customers and beneficial owners; and c) the bank shall accurately and continuously monitor the transactions with such customers and give special attention to business relationships and transactions that occur with any of them. Insurance: In the case of PEPs the following enhanced due diligence should be performed: a) the approval of the company general manager, authorised manger, or the person authorised thereby shall be obtained when commencing a relation with these customers. Such approval shall also be obtained when a customer or a beneficial owner is discovered to be a PEP; b) take sufficient procedures to identify the source of wealth of customers and beneficial owners who fall under such categories; and c) conduct enhanced ongoing monitoring on the company's dealings with politically exposed persons.

What enhanced due diligence must be performed for correspondent banking relationships?

When establishing correspondent banking relationships the correspondent bank shall: a) verify the nature of the external bank’s business activity and reputation thereof in the field of anti-money laundering and counter terrorist financing transactions; b) obtain the approval of the bank’s general manager or regional manager before the commencement of the relationship; c) ensure that the external bank is subject to effective supervision by a supervisory authority in the bank’s home country; d) anti-money laundering and counter terrorist financing systems shall be verified by the bank and applied by the respondent bank; and e) ensure that the respondent bank has exerted due diligence regarding its customers who have authority to use (payable-through accounts) and that the respondent bank is able to provide information related to such customers and transactions made to such accounts when needed.

Are relationships with banks who might be considered a 'shell' and without substance permitted?

Yes

In what circumstances is additional due diligence required for non face-to-face transactions and/or relationships?

The bank shall apply the necessary policies and procedures to avoid risks related to non face-to-face dealings with customers, taking into consideration the instructions of the Central Bank.

To whom are SAR's made? (suspicious activity reports)

The Anti-Money Laundering & Counter Terrorist Financing Unit.

Link to website of SAR reporting

http://www.amlu.gov.jo/ar-jo/forms.aspx

Other Suspicious or unusual transactions obligations.

No.

Are there any de-minimis thresholds below which transactions do not need to be reported?

No.

Are there any penalties for non compliance with reporting requirements e.g. tipping off?

Yes. Article 15 of the Anti-Money Laundering and Countering Terrorist Financing Law 2007 prohibits tipping off

Are there any requirements (legal or regulatory) to use automated Suspicious Transaction monitoring technology?

No.

Is there a requirement to obtain authority to proceed with a current/ongoing transaction that is identified as suspicious?

Yes. They should be reported to the Anti-Money Laundering and Counter Terrorist Financing Unit which will recommend whether to proceed or not.

Does the local legislation allow transactions to be monitored outside the jurisdiction?

The law is not explicit in this regard.

Is there a legal requirement for a bank’s external auditor/other external organisation to report on the bank’s AML systems and controls?

Yes

If an external report on the bank’s AML systems and controls is required: a) how frequently must the report be provided?

annually

To whom should the report on AML systems be submitted?

the Anti-Money Laundering and Terrorist Financing Unit in Jordan

Is an AML system part of the financial statement audit?

Yes

What are the requirements for the content of this external report on a bank’s AML systems and controls? Does it require: a) sample testing of KYC files? b) sample testing of SAR reports? c) examination of risk assessments?

Yes

Data Protection Laws And Personal Data

Jordanian Constitution.

Data Protection for Corporate Data

Jordanian Constitution.

Data protection for "sensitive Data" and additional protections.

there are a number of laws which already provide some level of privacy protection such as the Law of Securing Information Obtaining Rights.

Do any restrictions on the transfer of credit reports exist?

Jordan has no Data Protection Laws, however the Jordanian Constitution specifically recognises a limited right to privacy but these rights must be circumscribed by laws to be claimable. Furthermore, there

Regulator Acronym

CBJ

Year of last FATF mutual evaluation

2013, 2009

Field 67

bank

National ID card details

compulsory identity document, as prescribed in the Identity Card Carrying and Displaying Act of 1982: "Any resident sixteen years of age or older must at all times carry an Identity card, and present it upon demand to a senior police officer, head of Municipal or Regional Authority, or a policeman or member of the Armed forces on duty."

Compulsory?

Passport Photo

practical Guidance yes / no

Is there a risk based approach

Legal Requirement

Yes

Requirement to proceed

Yes

requirement to use automated suspicious transaction tools

Who are SARS made to?

AMLCTFU

shell banks

Yes

EDD for correspondent banking

Yes

PDF of case law

Minimum transactions

JOD 10,000

Min transaction USD

14090

Personal Data protection

Data Protection for Corporates

Personal Data Protection Act

https://www.constituteproject.org/constitution/Jordan_2011.pdf

If the AML laws and/or regulations became effective in the last 2 years, what were the requirements of the previous AML regime?

N/A

Non financial sector (e.g. casinos, high value goods etc.)

Real estate companies and dealers in precious metals and stones are subject to the AMLCTFL and instructions have been issued, monitoring of compliance with implementation has to date required their accountants to verify the extent of adequacy of relevant policies and procedures and include information in the annual report. There are no casinos in Jordan.

Does the country have a risk based approach?

Guidance issued by the Central Bank approves the adoption of a risk based approach for customer due diligence.

Where copies of identification documentation are provided, what are the requirements around independent verification or authentication?

Banking: A bank shall preview the official identification documents of the customer and obtain a copy of the same documents signed by a competent employee declaring that it is an original copy and take the necessary procedures to verify the validity of the information and data obtained from the customer from reliable and neutral sources, including contacting the competent entities that issued such official documents, and refer to the database of the Civil Status which is available to the banks and the website of the Companies Control Department. In the case of legal persons, the existence, legal form, names of the owners and the authorised signatories of the legal person shall be verified by virtue of necessary documents and information contained therein, such as, memorandum and articles of association, and the certificates issued by the Ministry of Industry and Trade and certificates issued by the commercial and industrial chambers in addition to obtaining the required official certificate from the competent authority in case the company is registered abroad. Insurance: Verify the existence of the legal person and its legal form, as well as the names of owners and signatories of the legal person through the necessary documents and the information they include, such as memorandum of association, articles of association, and certificates issued by the Ministry of Industry and Trade, Chambers of Industry and Trade and Company Control Department, in addition to the necessity to obtain a registration certificate of the legal person at the competent authorities in case the company is registered outside of Jordan. The company shall view the official documents to identify the customer and their activities and have a copy of this documentation signed by the competent company employee or authorised person declaring that it is an original copy. The validity of the information should be verified using neutral and reliable sources, including contacting the competent entities that issued the official documents, and referring to the website of the Company Control Department.

Is there case law, other constitutional law or any other laws or regulations that may impact upon the transfer of information to this jurisdiction?

List of case law, constitutional law or any other laws or regulations that may impact upon the transfer of information.