- What does ‘targeted financial sanctions’("TFS") mean?
The term targeted sanctions means that such sanctions are imposed against specific individuals, entities, or groups. The term TFS includes both asset freezing without delay and prohibition from making funds or other assets or services, directly or indirectly, available for the benefit of sanctioned individuals, entities, or group.
- What is the legal framework for implementing targeted financial sanctions in the Hashemite Kingdom of Jordan?
Article (41) of the Anti-Money Laundering and Terrorist Financing Law No. (20) of 2021 stipulates that the Council of Ministers, based on the recommendation of the Anti-Money Laundering and Terrorist Financing National Committee, shall form a technical committee concerned with implementing Security Council resolutions related to terrorism, terrorist financing, and the proliferation of weapons of mass destruction.
Accordingly, upon the recommendation of the Anti-Money Laundering and Terrorist Financing National Committee, the Council of Ministers issued a decision to form a technical committee to implement Security Council resolutions related to terrorism, the financing of terrorism, and the proliferation of weapons of mass destruction, and for the committee to exercise its duties stipulated in the instructions for implementing Security Council resolutions related to terrorism, the financing of terrorism, and the proliferation of weapons of mass destruction issued by Anti-Money Laundering and Terrorist Financing National Committee based on the provisions of Article (41) of the Anti-Money Laundering and Terrorist Financing Law referred to above.
- What does 'freezing' mean?
Freezing means to prohibit the transfer, conversion, or movement of any funds or other assets that are owned or controlled by a designated individual, entity, or group in the Sanctions Lists.
- What does ‘without delay’ mean?
‘Without delay’ means applying freezing measures immediately upon the decision to list or amend the National List and within 24 hours of the issuance of the decision to list or amend the sanctions lists.
- Who are the reporting entities?
Financial institutions and DNFBPs covered by the provisions of the effective Anti-Money Laundering and Counter-Terrorism Financing Law.
- Who must comply with TFS?
Reporting entities, competent authorities, all persons, and any person or entity present on Jordanian territory or another entity.
- What is meant by funds and economic resources?
Funds are assets or properties of every kind, whether tangible or intangible, movable or immovable, however acquired; and legal documents or instruments including electronic or digital, evidencing title to those assets or any share or interest in such assets, whether inside or outside the Kingdom, including currency in Jordanian Dinar or foreign currencies, bank accounts, safe deposit boxes, securities, commercial papers, traveler's cheques, wire transfers, letters of guarantee, letters of credit, electronic, digital or virtual assets and any interests, dividends or other income accruing from or generated by such funds, or assets and economic resources including oil and natural resources.
Economic Resources are In addition to what is mentioned in the funds definition, the scope of economic resources extends to include any resources, assets or activities that incur or might incur income, or can be used to obtain any money, commodities or services that could benefit individuals listed on the sanctions lists and the National List. These include, but are not limited to, computers, software, artworks, patents, copyrights, oil products, coal, natural resources, chemical and agricultural materials, jewelry, gold, precious metals, weapons, antiquities, wildlife and their trading, kidnap for ransom and offences proceeds, which include dealing with drugs and human trafficking in addition to extortion and burglary. In addition to the aforementioned, the resources include those used in providing services for hosting websites and online publishing and related services, as well as funds and assets that might be available directly or indirectly for listed individuals in regards to their travel and costs of travel and residency.
- What does freezing include?
The freezing extends to cover the following:
- All funds, other assets and economic resources owned or controlled by listed individuals and entities, regardless of whether these funds, other assets and economic resources are used with committing or conspiracy to commit a specific terrorist act or arms proliferation.
- All funds, other assets and economic resources owned or controlled by listed individuals and entities, whether fully or partially, directly or indirectly.
- All funds, other assets and economic resources generated from funds, other assets and economic resources owned or controlled by listed individuals and entities, whether directly or indirectly.
- All funds, other assets and economic resources owned by persons or entities who work on behalf or under the direction of listed individuals and entities.
- How long do notified bodies have to take action (freeze/unfreeze) when updating the sanctions list or national list?
Reporting entities and all persons and entities must, within (16) hours of publishing any amendments to the sanctions lists, and immediately without delay upon publishing the national list, take the necessary action on their part, whether freezing in the event of the designation or lifting the freeze in the event of the designation being lifted.
What is meant by (16) hours are actual hours regardless of official working hours, meaning that this includes official holidays and outside official working hours, and the instructions do not allow delay in implementing the obligation.
- How long must the reporting bodies provide the Technical Committee with all information relevant to the action taken by them in particular when any update occurs to the sanctions list or the national list?
Reporting entities, competent authorities, all persons, and any person or entity present on Jordanian territory and other entities that freeze funds and other assets belonging to persons whose names are listed on the sanctions lists and the national list, or take action to prohibit the provision of financial services, must provide the Technical Committee as soon as possible with all relevant information. The action taken in this regard and not to exceed (3) business days from the time the action was taken, provided that the information provided includes the size of the funds or other assets that were frozen, their type, and other details and any action taken regarding an attempt to conduct a transaction or business relationship.
- If I determined that the client is subject to international sanctions, but is not included on the Jordanian national list nor on the United Nations sanctions lists related to terrorism, terrorist financing, and the proliferation of weapons of mass destruction, should I notify the technical committee about the freezing of funds or if there is a partial name match?
No, the Technical Committee is only informed in cases related to the Jordanian National List and the UN Sanctions Lists relating to terrorism, terrorist financing and the proliferation of weapons of mass destruction.
As for names on international sanctions lists (such as OFAC, the UK Treasury, the European Union, etc.), the instructions of the relevant regulatory authority on how to deal with international sanctions lists must be followed.
- How do we know if an individual or entity is listed?
You can find out which individuals, entities, or entities are listed by searching the updated sanctions lists in the links below:
Link to the United Nations lists related to terrorism, its financing, and the financing of the proliferation of weapons of mass destruction:
https://sanctions.amlu.gov.jo/ar/sanctions
Link to the national list:
https://sanctions.amlu.gov.jo/ar/national/list
- Is there a copy of the national list in the Kingdom in Excel format?
Yes, an Excel version of the National List of Terrorists can be downloaded by clicking on: National List.
- How can I obtain the latest updates on the National and UN Sanctions Lists?
The latest updates can be obtained by downloading the electronic application of the Technical Committee, which bears the name (AMLU), which is available on international electronic store platforms (Google Play - App Store). Through the electronic application, notifications are sent to application users in the event of any addition, modification or deletion to the sanctions lists and the national list, so that the necessary measures (freezing/unfreezing) can be taken as quickly as possible.
For more details on how to download and register, please follow the steps as indicated on the Technical Committee website under the (electronic application) tab.
- What actions should financial institutions or designated non-financial businesses and professions take if funds or other assets of listed persons or entities are disclosed?
If a financial institution or DNFBP determines that funds or other assets held or managed belong to a designated person, entity or organization, the following steps must be taken to implement targeted financial sanctions:
- Freeze without delay all funds or other assets owned or controlled by him and any funds, other assets or economic resources generated or derived from them.
- Refrain from making funds, other assets and economic resources available or providing financial or other services to or for the benefit of the listed individual or entity.
- Providing the technical committee as soon as possible with all information relevant to the action taken in this regard, and not exceeding (3) working days from the time the action was taken, provided that the information provided includes the size of the funds or other assets that have been frozen, their type, and other details and any An action taken regarding an attempt to conduct a transaction or business relationship, by sending an email to the technical committees email address (Sanctions@amlu.gov.jo), and the TC must confirm the receipt.
- What is meant by the similarity and identicalness of names?
Similarity means the presence of a partial identicalness in one or more of the information relating to the listed individual or entity with those available to the subjected entity about the individual or entity suspected of being listed.
The results of matching names can lead to the following:
|
It means that the name being checked is not the same as the listed one.
Example: (Mark Warney, Mark Watney)
Example: Name of individual: Diana Miracle, and Name of Listed Ship: Diana
|
False identicalness
|
|
It means that the name being checked partially matches one or more of the listed names identifiers. However, further search should be made with the other identifiers (full name, date of birth, nationality).
Example: (Mark Alex) is identical to (Mark Alex) by name, but the place of birth, date of birth and nationality are different.
|
Potential identicalness
|
|
It means that the name being checked matches the name of the listed individual and more than one of the listed name's identifiers.
|
Confirmed identicalness
|
- What if the customers name does not match the name of the person or entity listed?
In the event that the person or entity has a name similar (in most aspects) to any listed person or entity (similarity in any three syllables) or (75%), the subject entity must refer to the information related to this listed person or entity and verify the customer data using the identifiers. published in the sanctions lists, taking into account the following:
- In the event that there is a partial match in one or more of the information related to that person or entity with the information available to the subject entity, and the authority is completely convinced that the individual or entity is not the one concerned with the listing despite the presence of a match in the identifiers, that is, (a false positive result) There is no need to implement any measures related to targeted financial penalties, and the transaction can be allowed to take place, and the entity must keep the verification mechanism and actions taken regarding the case in internal records.
It is possible that among the entity’s clients are relatives of the listed persons (father, son, brother, sister, etc.), and accordingly, there is no need to implement any measures related to targeted financial penalties, and there is nothing preventing the implementation of the transaction and the proceeding with the procedures after verification has been made. The client is not acting on behalf of or at the direction of the listed relative with legal documents (such as power of attorney or authorization to sign).
- If there is a partial match in one or more of the information related to that person or entity with the information available to the subject entity and the entity has doubt as to whether the customer is the listed person or entity and the entity is unable to decide on the case, the subject entity must inform the committee. The Technical Committee shall do so immediately and take action to stop operations until instructions are received from the Technical Committee in this regard.
- How can I report a confirmed or partial name match?
The Technical Committee shall be notified via email (Sanctions@amlu.gov.jo), where the notification shall include all details about the type and value of the funds or other assets frozen, confirmed match identification documents, and any other supporting documents.
- How can we know if a client is working on behalf of or at the direction of a listed person or entity?
The business relationship on behalf of or at the direction of the listed persons must be proven with legal documents, such as a power of attorney or authorization to sign".
- What are the consequences of not adhering to what is stipulated in applicable legislation?
Article (41) of the Anti-Money Laundering and Terrorist Financing Law stipulates that anyone who does not carry out the required obligations shall be subject to imprisonment for a period not exceeding three years or a fine not less than one hundred thousand dinars, or both penalties.
In addition, supervisory authorities may impose appropriate administrative sanctions (from a written warning to revocation of the license) in the event of a violation or failure to implement the targeted financial sanctions obligations.
- Can I be held liable for freezing funds of a designated individual or entity based on the Technical Committee Decision?
Criminal, civil, or administrative liability shall not be imposed on any person who freezes funds and economic resources in accordance with the provisions of Article (41) of the Anti-Money Laundering and Combating the Financing of Terrorism Law.
- Can permission be obtained to access frozen assets by the designated individual or entity?
Yes, based on the principles and conditions indicated in detail in the (Grievances and Requests) tab.
- When and how often do I have to conduct matching/ scanning and screening?
- Upon any updates to the Local Terrorist List or UN Consolidated List. In such cases, screening must be conducted immediately and without delay to ensure compliance with implementing freezing measures without delay (within 24 hours).
- Prior to onboarding new customers.
- Upon KYC reviews or changes to a customers information.
- Before processing any transaction.
- Is notifying the customer after implementing freezing measures considered as tipping off?
No. FIs and DNFBPs may notify their customers after the freezing measures have been implemented. As long as the customer is notified after the freezing measures have been taken, it is not considered as tipping off.
However, FIs and DNFBPs must not inform their customers prior to taking the freezing measures.
- What shall I do if my name is similar to a designated person?
In case freezing measures were taken in relation to funds of a person that has the same (or similar) name as a designated individual or entity but who is in fact not the same person, such person can send a request to lift the freezing measures to the Technical Committee.
Such a request should include a grievance letter addressed to the Technical Committee and other supporting documents (such as ID documents) and should be to the Technical Committee via email (Sanctions@amlu.gov.jo).
- What is the procedure that must be taken if the client has a direct relationship/relative with a listed person (father, son, brother, sister, etc.)?
There is no need to implement any measures related to targeted financial penalties, and there is nothing preventing the implementation of the transaction and the proceeding with the procedures after verification has been made. The client is not acting on behalf of or at the direction of the listed relative with legal documents (such as power of attorney or authorization to sign).
- How can the reporting entity verify that the designated person has obtained an exemption/permission to use the frozen funds?
The reporting entity can contact the technical committee to verify the validity of the exemption.
- What is meant by refraining from providing the currency exchange service to the listed person, and should the reasons for refraining from providing the service be stated?
Matching must be performed first before starting the financial service (before taking the amount to be disbursed from the customer). If it is confirmed that the customer is listed on sanctions lists or the national list, the service cannot be provided, and there is nothing preventing the customer from being informed of the reason for refraining from providing the service.
- If a customer on the national and international lists dies and had a life insurance policy and it becomes payable to the beneficiaries mentioned in the policy, can the company pay compensation if the beneficiaries are not listed on the lists?
Beneficiaries must submit a request to the relevant committee to delist the name of the person listed in the event of his death, and when a decision is made to delist the persons name from the list, the beneficiaries can benefit from the insurance policy.
- What is the procedure to be taken if the customer fails to pay the installments due to him on savings insurance policies with the automatic credit feature (APS)?
Companies must freeze savings deposits immediately after the listing decision is issued, and accordingly, due installments cannot be deducted from it.