US embassy cable - 04AMMAN10063

UNCLAS AMMAN 010063 
 
SIPDIS 
 
STATE FOR INL, NEA; JUSTICE FOR OIA, AFMLS; TREASURY FOR 
FINCEN 
 
E.O. 12958: N/A 
TAGS: KTFN, KCRM, PTER, KSEP, SNAR, EFIN 
SUBJECT: 2004-2005 INTERNATIONAL NARCOTICS CONTROL STRATEGY 
REPORT FOR AMMAN, PART II - MONEY LAUNDERING AND FINANCIAL 
CRIMES 
 
REF: STATE 254401 
 
1. Embassy Amman's submission for the 2004-2005 International 
Narcotics Control Strategy Report (INCSR) Part II follows: 
 
BEGIN TEXT 
 
Jordan is not a regional or offshore financial center and is 
not considered a major venue for international criminal 
activity. The banking and financial sectors, including 
moneychangers, are supervised by competent authorities 
according to international standards. The Central Bank of 
Jordan, which regulates foreign exchange transactions, issued 
anti-money laundering regulations designed to meet the FATF 
Forty Recommendations on Money Laundering in August 2001. 
Under Jordanian law, money laundering is considered an 
"unlawful activity" subject to criminal prosecution. 
 
An October 8, 2001 revision to the Penal Code criminalized 
terrorist activities, specifically including financing of 
terrorist organizations. Jordan ratified and became a full 
party to the International Convention for the Suppression of 
Financing of Terrorism on June 16, 2003. Jordan has checked 
for assets of terrorists and terrorist groups identified by 
the United Nations 1267 Sanctions Committee, although no such 
assets have been identified in Jordan to date. In December, 
2004, Jordan's Department of Customs signed a bilateral 
Customs Mutual Assistance Agreement with the United States 
Department of Homeland Security to facilitate the exchange of 
information, including information related to money 
laundering and financial crimes. 
 
Jordan has neither enacted a comprehensive anti-money 
laundering law, nor established an independent financial 
intelligence unit (FIU). However, a draft anti-money 
laundering law is nearing completion for approval by the 
cabinet and presentation to Jordan's parliament.  Anti-money 
laundering efforts are handled by an anti corruption agency 
within the Jordanian Intelligence Services. However, 
Jordanian officials report that financial institutions file 
suspicious transactions reports and cooperate with 
prosecutors' requests for information related to narcotics 
trafficking and terrorism cases. Jordan's Central Bank has 
instructed financial institutions to be particularly careful 
when handling foreign currency transactions, especially if 
the amounts involved are large or if the source of funds is 
in question. The Banking Law of 2000 (as amended in 2003) 
waives banking secrecy provisions in any number of criminal 
cases, including suspected money laundering and terrorism 
financing. 
 
Jordan is a party to the 1988 UN Drug Convention. Jordan has 
signed, but not ratified, the UN Convention against 
Transnational Organized Crime. Jordan is a party to the UN 
International Convention for the Suppression of the Financing 
of Terrorism. 
 
Jordan has taken steps in constructing an anti-money and 
antiterrorist finance program, but much remains to be done. 
Specific anti-money laundering legislation should be passed 
recognizing all types of predicate offenses. Jordan should 
establish a Financial Intelligence Unit (FIU) that receives, 
analyzes and disseminates suspicious transaction reports to 
law enforcement agencies. Jordanian law enforcement and 
customs should examine forms of trade-based money laundering. 
 
END TEXT 
HALE