2004-2005 INTERNATIONAL NARCOTICS CONTROL STRATEGY

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