US embassy cable - 02AMMAN3010

UNCLAS SECTION 01 OF 02 AMMAN 003010 
 
SIPDIS 
 
SENSITIVE 
 
TREASURY FOR FINCEN -- AHMED ALBASHARI 
 
E.O. 12958: N/A 
TAGS: ETTC, EFIN, PTER, KVPR, CVIS, JO 
SUBJECT: JORDAN: TREASURY QUESTIONS ON TERRORISM FINANCE 
 
REF: STATE 61381 
 
1.  (sbu)  In a conversation with Econ Chief, Malakh Ghanem, 
a senior official in the Central Bank of Jordan banking 
supervision department (effectively the deputy), and her 
staff provided orally the following answers to the questions 
in reftel.  The CBJ's answers were developed in consultation 
with CBJ legal staff.  The CBJ is happy to address any 
additional questions, which they suggested be transmitted to 
them by the embassy in order to ensure proper coordination 
within the Jordanian government.  CBJ staff is also 
interested in educational and training opportunities on 
terrorism finance issues.  Since Jordan does not currently 
have a Financial Intelligence Unit (FIU) or the equivalent, 
they would appreciate information on establishing such a unit 
and on participation in the Egmont Group.  (The CBJ is 
planning to send a representative to an upcoming 
DS/ATA-sponsored course on legislation related to terrorism.) 
 
2.  (sbu)  The following answers are keyed to reftel 
questions. 
 
(1)  The CBJ has issued freeze orders for all thirteen lists 
issued under EO 13224.  Freeze orders are issued via 
circulars that are delivered by the CBJ to Jordanian 
financial institutions on the same day as the embassy 
provides notification of the USG action. 
 
(2)  No.  However, under Jordan's anti-moneylaundering 
regulations, financial institutions are required to notify 
the central bank of suspicious transactions.  This occurs 
periodically, but none of those transactions have been 
terrorism-linked. 
 
(3)  No names were excluded. 
 
(4)  Penalties are addressed in Article 88 of the Banking Law 
(law number 28 of 2000).  They include 1) addressing a 
written warning, 2) instructing a bank to submit a 
satisfactory program of measures to eliminate the violation 
and rectify the situation, 3) instructing the bank to cease 
certain activities, or forbidding the bank to distribute 
dividends, 4) imposing a fine on the bank not to exceed JD 
100,000 (usd 140,000), 5) instructing the bank to temporarily 
suspend from service any administrator, other than a member 
of its board of directors, or to dismiss such administrator, 
depending on the gravity of the violation, 6) removing the 
chairman or any member of the board of directors of the bank, 
7) dissolving the board of directors of the bank and placing 
the bank under the management of the central bank for a 
period not to exceed twelve months.  The governor may extend 
the period for up to twelve additional months, and 8) 
revoking the license of the bank. 
 
(5)  No. 
 
(6)  Yes.  Under Article 93 of the Banking Law, financial 
institutions should provide full account information, 
including name of holder, balance, source of funds and any 
other relevant information. 
 
(7)  Article 93 freeze orders apply for 30 days and can be 
extended. 
 
(8)  No. 
 
(9)  Terrorism related assets have not been identified or 
frozen by the CBJ. 
 
(10) Same day (regarding information received from the USG). 
 
(11) Same day. 
 
(12) Assets of Jordanian nationals and residents as well as 
foreign nationals can be frozen under Jordanian law. 
 
(13) There have been no legal challenges.  Challenges would 
be through the judicial system. 
 
(14) Additional evidence can be used to defend against a 
challenge.  The Jordanian legal system can protect sensitive 
information. 
 
(15) Details of terrorism-related arrests have been reported 
through separate channels. 
 
(16) Post will forward copies of the banking law articles 88 
and 93 (in English), as well as copies of anti-money 
laundering regulations (Arabic), and amendments to the penal 
code criminalizing terrorist related activities, including 
financing (Arabic), to Ahmed Albashari at FINCEN. 
Gnehm