JORDAN: TREASURY QUESTIONS ON TERRORISM FINANCE

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