US embassy cable - 05AMMAN5626

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 005626 
 
SIPDIS 
 
TREASURY FOR LEVEY/ZARATE 
 
E.O. 12958: DECL: 03/04/2015 
TAGS: EFIN, ECON, KTFN, ETTC, JO 
SUBJECT: AML LAW SNAFU MAKES ITS SWIFT PASSAGE MORE 
DIFFICULT 
 
REF: AMMAN 2328 
 
Classified By: Charge d'Affaires David Hale for reasons 1.4 (b), (d), a 
nd (e) 
 
1. (C) SUMMARY: The failure of the GOJ to place a draft 
anti-money laundering law on the agenda for the extraordinary 
session of Parliament beginning July 14 may mean that the 
bill,s consideration will be delayed until the start of the 
next regular session of Parliament.  Whenever it is 
considered, its identification with USG interests will likely 
mean that its progress will be slow at best.  The lack of an 
AML law will continue to pose problems for USG-GOJ law 
enforcement and counterterrorism cooperation. END SUMMARY. 
 
2. (C) In an astonishing foul-up that GOJ interlocutors are 
still struggling to explain, the GOJ failed to place on the 
agenda of Parliament's extraordinary summer session a draft 
anti-money laundering law whose passage has been a top USG 
priority.  The AML bill, which was originally presented to 
Parliament on March 20, 2005, was not voted on by the body 
before the expiration of the session on March 31, 2005 
(reftel).  At that time, the Embassy had received mixed 
messages from GOJ interlocutors on whether the bill would be 
placed on the agenda for the extraordinary summer session; 
more recently, Charge had received assurances from King 
Abdullah, Prime Minister Adnan Badran, Foreign Minister 
Farouq Qasrawi, Finance Minister Adel Kodah, and Justice 
Minister Abed Shakhanbeh that the bill would be on the agenda. 
 
3. (C) Once we confirmed that the bill was not on the agenda 
for the July 14 session, Charge contacted Deputy Prime 
Minister Marwan Muasher, Finance Minister Kodah, and the 
Palace to determine why the bill had not been placed on the 
agenda and what could be done to rectify the situation.  The 
mistake appears to have been just that - a mistake.  The 
Royal Palace proposed sending an amendment to parliament 
adding AML to the agenda as soon as the King (who is the only 
person constitutionally authorized to put items on the agenda 
for an extraordinary session of Parliament) returns from his 
visit to Africa.  While there is some question as to the 
legality of placing a law on Parliament,s agenda after a 
parliamentary session has already convened, the Palace 
assured Charge that the AML bill would be put on the agenda 
immediately upon the King,s return and that there would be 
sufficient time in the extraordinary session for the bill to 
be given the consideration necessary to be passed. 
 
4. (C) DPM Muasher, on the other hand, was more pessimistic, 
noting that the session was too short for the law to be given 
due consideration, and that even if it was brought up, it 
would likely suffer the same fate that the Article 98 law met 
in this morning,s session of Parliament (septel).  If 
Muasher is correct, the law will likely not have a serious 
chance of passing through Parliament before the beginning of 
the next ordinary session of Parliament, which will take 
place no earlier than October and will likely be delayed 
until after November 10, the end of the Eid al-Fitr holiday. 
When Charge informed Planning Minister Suhair Al-Ali, she was 
also clearly shocked by the absence of the AML item in the 
agenda. (She pulled out her copy insisting it was included, 
only to find it wasn't.)  Apart from U.S. interest in the 
bill, al-Ali stressed that AML was a critical piece of 
Jordan's reform agenda and a counterpart of the draft 
anti-corruption law.  She pledged to work on getting the 
draft back on the agenda. 
 
5. (C) COMMENT: Despite Muasher's pessimistic assessment, the 
government is committed to the passage of this bill and plans 
to push for its quick consideration.  Jordan's current lack 
of an AML law is an obstacle to USG-GOJ cooperation on 
counterterrorism.  The lack of such a law makes it virtually 
impossible for the USG to obtain bank records of individuals 
and entities suspected of financial crimes including 
financing of terrorism.  Also awaiting the passage of an AML 
bill is the Central Bank of Jordan,s financial intelligence 
unit, which would receive its legal basis from the new AML 
law.  USAID and FinCEN have devised a training program for 
this unit-in-waiting, which they will activate as soon as the 
FIU is stood up - but the FIU cannot be stood up before the 
passage of the AML law. 
 
6. (C) COMMENT CONT'D: Based on what they have told us, 
everyone in Jordan,s banking community from the Central Bank 
governor to the chairmen and CEOs of virtually every 
commercial bank active in Jordan supports the idea of an 
anti-money laundering law.  The passage of the current AML 
bill through the Cabinet had faced initial delays due to 
perceptions by some Cabinet ministers that the law would 
cramp investment and violate rights to privacy.  These 
objections might make it more difficult to pass the current 
AML bill; more likely, however, the identification of the AML 
bill with USG interest will likely prove to be its biggest 
weakness, whether it comes before Parliament in this 
extraordinary session or in the ordinary session that follows 
it. END COMMENT. 
HALE