Recent amendments to Jordan's Companies Law

 

In line with Jordan’s commitment to combat money laundering, a series of legislative instruments have been enacted including the very recent Amendment to the Companies Law, which was published in the Official Gazette on 16 September 2021 as Law No. 19 of 2021, requiring registered companies to disclose information pertaining to their ultimate beneficial owners.

The Amendment grants companies a grace period of three months from the effective date to compile and file beneficial ownership information. Failure to comply with such disclosure requirements may attract a criminal penalty of a fine between JOD 2,000, and not exceeding JOD 20,000, and/or an imprisonment term for one year.

What this means for you?

While the scope of beneficial ownership information which will be required going forward remains unclear, according to the Amendment, implementing instructions will be issued very soon to clarify the requirements.

Therefore, companies registered in Jordan should begin to collate documents and be prepared to provide the requisite information regarding beneficial ownership in anticipation of the issuance of the implementing instructions, so that they are in a position to comply when further guidance is provided. We will keep you abreast of these requirements and changes as they develop.