In 2022, Jordan introduced Regulation No. 62 of 2022 on the Beneficial Ownership Registry, issued pursuant to Article 273 bis of the Companies Law No. 22 of 1997. This regulation establishes a formal framework for identifying and recording the natural persons who ultimately own or control companies registered in Jordan.
The beneficial ownership regime forms a central part of Jordan’s wider reform agenda to:
- Strengthen corporate transparency
- Align with international anti-money laundering (AML) and counter-financing of terrorism (CFT) standards
- Address recommendations issued by the Financial Action Task Force (FATF)
Through these measures, Jordan aims to enhance investor confidence, improve compliance with global obligations, and solidify its position as a jurisdiction committed to responsible and transparent business practices.
Beneficial Ownership Requirements in Jordan
All companies registered in Jordan — whether locally owned or with foreign participation — must identify and disclose their ultimate beneficial owners. These are the natural persons who ultimately own or control the company, directly or indirectly.
The regulations require companies to:
- Maintain accurate records of beneficial ownership
- Disclose this information to the Companies Control Department (CCD)
- Update the records promptly whenever changes occur
This framework strengthens corporate transparency, supports compliance with AML and CTF obligations, and aligns Jordan with international standards. Companies that fail to comply may face penalties or business restrictions.
Who is a Beneficial Owner?
A beneficial owner is defined as the individual who ultimately exercises ownership rights or control over a legal entity, even if the entity is formally registered under another person’s or entity’s name.
This includes individuals who:
- Hold a direct or indirect ownership interest in the company
- Have the ability to exercise significant control over management or decision-making
- Benefit from the company’s assets or operations, even without being listed as a shareholder
Scope of Application
The disclosure obligation applies to all companies registered in Jordan, including:
- Locally owned companies
- Companies with partial or full foreign ownership
- Companies established through special legal structures (e.g., holding companies or layered shareholding)
Compliance Obligations
Companies must:
- Identify their UBOs through appropriate due diligence
- Maintain accurate and up-to-date records of beneficial ownership
- File disclosures with the Companies Control Department (CCD)
- Update records promptly when there is a change in ownership or control
Regulatory Purpose
The aim of these requirements is to:
- Enhance corporate transparency
- Strengthen compliance with AML and CTF standards
- Support investor confidence by aligning Jordan with international commitments such as FATF recommendations
- Improve the ease of doing business and the attractiveness of Jordan as an investment destination
Consequences of Non-Compliance
Failure to disclose or update beneficial ownership information can result in:
- Administrative fines
- Restrictions on the company’s ability to conduct certain activities
- Potential reputational risks with regulators, banks, and international counterparties
Practical Considerations for Businesses
Foreign investors and multinational groups operating in Jordan should ensure that their local subsidiaries or joint ventures are fully compliant. This often involves:
- Conducting internal ownership mapping
- Reviewing cross-border holding structures
- Ensuring documentation is in place to support CCD filings
Strategic Implications & Advice
- All companies (existing and new) must ensure their beneficial ownership data is accurate, up-to-date, and documented
- In mergers, acquisitions, joint ventures, or investments, due diligence must include verifying BO compliance and CCD submission status
- For foreign investors and subsidiaries, structure your investment to allow BO disclosure while complying with law
- Consider internal audits of ownership and control structures to preempt compliance risks or penalties