On-shore VASP in Jordan

Repeated warnings and clarifications of the prohibition.

Law enforcement action against individuals involved in fraud, scams, or money laundering where crypto is a component.

Directives to financial institutions to not deal with crypto.

Regulator Name: Central Bank of Jordan (CBJ)

December 2021: The CBJ re-emphasized its warning regarding dealing in cryptocurrencies.

Ongoing: The CBJ's official statements and public advisories consistently highlight the risks and prohibition.

Not Legal Tender: Virtual assets (like Bitcoin) are explicitly stated not to be legal tender in Jordan.

Prohibition for Regulated Entities: Financial institutions operating under CBJ supervision (banks, payment service providers, etc.) are generally prohibited from dealing with virtual assets, facilitating transactions involving them, or providing services related to them to customers. This effectively means that regulated financial entities cannot offer crypto services.

Warnings to the Public: The CBJ has consistently warned the public about the high risks associated with dealing in virtual assets, including price volatility, lack of consumer protection, cybersecurity risks, and potential use in illicit activities.

No Specific Licenses Exist: There are no prescribed licenses for these activities because the CBJ has not opened the market for them.

Implied Prohibition: Any entity seeking to operate these services within Jordan and deal with Jordanian residents or financial institutions would likely run afoul of CBJ directives.

Neither is in place for VASPs: Jordan currently operates neither a registration-only regime nor a comprehensive licensing regime specifically for virtual asset service providers. The approach is more restrictive.

Central Bank of Jordan (CBJ) Statements and Warnings:

Anti-Money Laundering and Counter-Terrorist Financing Law (Law No. 20 of 2021):

Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2021: This is the most recent comprehensive law that aligns Jordan's framework more closely with international standards, including FATF recommendations. While it doesn't explicitly detail VASP licensing, it broadens the scope of entities subject to AML/CFT obligations and strengthens preventative measures. It aims to cover all financial institutions and designated non-financial businesses and professions (DNFBPs) that might be exposed to ML/TF risks.

Identification and Verification of Customers:

For Individuals: Obtaining and verifying the customer's full name, date of birth, place of birth, nationality, permanent address, national identification number (e.g., national ID card, passport), and occupation. This often requires reliable, independent source documents (e.g., government-issued ID, utility bills).

Evidence fact jo.aml.identification-of-beneficial-ownership not found (may have been renamed).

Understanding the Purpose and Intended Nature of the Business Relationship: Collecting information on the customer's typical transaction patterns, the nature of their virtual asset activities, and the source of funds/wealth.

Ongoing Monitoring: Continuously scrutinizing transactions undertaken by customers to ensure they are consistent with the VASP’s knowledge of the customer, their business, and risk profile, including (where necessary) the source of funds.

Enhanced Due Diligence (EDD): Applying stricter measures for higher-risk situations, such as:

Report Suspicious Activities: Immediately report any suspicious transaction or activity (including attempted transactions) that they know, suspect, or have reasonable grounds to suspect involves money laundering or terrorist financing to the Financial Intelligence Unit (FIU-Jordan).

No Tipping-Off: Prohibit the disclosure to the customer or any third party that a suspicious transaction report has been or will be submitted.

Designated AML/CFT Compliance Officer: Appointing a senior-level compliance officer responsible for overseeing the AML/CFT program.

Internal Policies and Procedures: Developing and implementing comprehensive AML/CFT policies and procedures tailored to their specific risks and operations.

Employee Training: Providing ongoing training to all relevant employees on AML/CFT laws, regulations, internal policies, and how to recognize and report suspicious activities.

Independent Audit: Conducting regular independent audits of their AML/CFT programs to assess their effectiveness.

Retention Period: Records must typically be kept for a minimum period of five (5) years after the business relationship has ended or after the date of an occasional transaction.

Collect required information: Obtain and hold accurate and meaningful originator information and required beneficiary information for virtual asset transfers.

Transmit required information: Submit the required originator and beneficiary information to the beneficiary VASP (or to the originator VASP in the case of a receipt).

Verify information: Conduct verification of customer identity as part of their Customer Due Diligence (CDD) process.

Record-keeping: Maintain records of all transaction information and CDD data for a specified period (typically 5-10 years).

Central Bank of Jordan (CBJ) Circular No. 10/2022:

Entity Targeted: General public, financial institutions, and anyone contemplating dealing in cryptocurrencies. Violation Type: Dealing in, trading, or promoting cryptocurrencies within the Jordanian financial system is prohibited and deemed risky. The CBJ considers cryptocurrencies to carry high risks due to their volatile nature, lack of regulatory oversight, potential for money laundering and terrorist financing, and cyber risks. Penalty Amount: Not applicable to a general warning/prohibition. However, engaging in prohibited activities could lead to legal repercussions under existing financial and anti-money laundering laws, though specific penalties for crypto dealing outside of fraud aren't often publicized for individuals. Licensed financial institutions found violating CBJ directives could face regulatory penalties. Outcome: Maintenance of a strict prohibitory environment, discouraging financial institutions from engaging in crypto-related activities and warning the public against associated risks.

Outcome: Maintenance of a strict prohibitory environment, discouraging financial institutions from engaging in crypto-related activities and warning the public against associated risks.

Lack of Specificity: There is no specific GST legislation or guidance on the treatment of cryptocurrencies.

Crypto-Specific Reporting: There are no specific reporting requirements for cryptocurrency holdings or transactions in Jordan, primarily because they are not legally recognized or integrated into the regulated financial system.