AML LAW SNAFU MAKES ITS SWIFT PASSAGE MORE

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