Based on information provided by the International Monetary Fund (IMF) in its 2004 Article IV Consultation report, once the draft law on anti-money laundering (AML) is passed by Jordan, the country will be brought into full compliance with international standards. As of May 2007, Jordan's Parliament endorsed this law on anti-money laundering. However, due to the relative newness of the law, there is little information publicly available that addresses the comprehensiveness of this law. Moreover, a 2007 report by the IMF stressed Jordan's need too improve its AML legislative and institutional framework. According to a 2007 U.S. Department of State (DoS) report (released prior to the May 2007 endorsement of the AML law), Jordan lacks laws regarding confiscation and freezing of funds and has not established a Financial Intelligence Unit and is not party to the United Nations (UN) Convention against Transnational Organized Crime. The DoS report indicates that the Central Bank of Jordan has, however, issued instructions to banks to comply with international best practices in the areas of customer due diligence, politically exposed persons, wire transfers, record keeping, suspicious transactions reporting, and internal controls of banks. Nonetheless, there is insufficient information publicly available as to Jordan's compliance with the forty Recommendations and nine Special Recommendations of the Financial Action Task Force.

General Overview

Based on information provided by the International Monetary Fund (IMF) in its 2004 Article IV Consultation report, once the draft law on anti-money laundering is passed by Jordan, the country will be brought into full compliance with international standards . As of May 2007, Jordan's Parliament endorsed this law on anti-money laundering (IHT 2007). However, given the relative newness of the law, there is little information that addresses its comprehensiveness. Furthermore the most recent (2007) Article IV Consultation report by the IMF states that "Jordan needs to improve the overall legislative and institutional framework" (p. 17) for anti-money laundering.

According to a 2007 report by the U.S. Department of State (U.S. DoS), Jordan as yet has no law to combat money laundering, but Article 93 in the Banking Law of 2000 covers money laundering with respect to suspicious transactions and requires that banks alert the Central Bank of any such transactions. The report further notes that, in 2006, the Central Bank issued instructions to banks to comply with international best practices in the areas of customer due diligence (CDD), politically exposed persons, wire transfers, record keeping, suspicious transactions reporting (STR), and internal controls of banks.

The 2007 U.S. DoS report also recommends that the Jordanian government enact comprehensive anti-money laundering legislation that meets international standards, which would include establishing a Financial Intelligence Unit (FIU) that is cooperates with other international organizations and FIUs. In addition, the report notes that Jordan doesn't have a regime for the confiscation and freezing of assets that is in line with international requirements, and Jordan does not require the freezing of funds of terrorists on the United Nations Security Resolution (UNSCR) 1267 Sanctions Committee's consolidated list. However, assets can be frozen as part of criminal investigations. Finally, the U.S. DoS report notes that, in November 2006, an anti-terrorism law was enacted by the Jordanian Parliament that prohibits the collection of funds that would be intended to use for acts of terrorism.

Jordan is not a member of the Financial Action Task Force (FATF), but is a member of the Middle East And North Africa Financial Action Task Force (MENAFATF) and MENAFATF is an observer body of the FATF (FATF website).

The Principles

1. Legal Systems and Related Institutional Measures

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There is insufficient information publicly available regarding Jordan's compliance with the Financial Action Task Force's recommendations relating to this Principle. However, based on information provided by the International Monetary Fund (IMF) in its 2004 Article IV Consultation report, once the draft law on anti-money laundering is passed by Jordan, the country will be brought into full compliance with international standards . As of May 2007, Jordan's Parliament endorsed this law on anti-money laundering (IHT 2007). However, due to the relative newness of the law, there is little information that addresses the comprehensiveness of this law.

According to a 2007 report by the U.S. DoS, Article 93 in the Banking Law of 2000 covers money laundering with respect to suspicious transactions and requires that banks alert the Central Bank of any such transactions. The report notes that, in November 2006, an anti-terrorism law was enacted by the Jordanian Parliament that prohibits the collection of funds that would be intended to use for acts of terrorism.

The 2007 U.S. DoS report goes on to note that, as yet, Jordan doesn't have a regime for confiscation and freezing of assets that is in line with international requirements and does not require the freezing of funds of terrorists on the United Nations Security Resolution (UNSCR) 1267 Sanctions Committee's consolidated list; however, assets can be frozen as part of criminal investigations. The report also asserts that Jordan does not have a Financial Intelligence Unit (FIU), and recommends that Jordan establish one. The 2007 U.S. DoS report also recommends that Jordan become party to the United Nations (UN) Convention against Transnational Organized Crime.

2. Preventive Measures - Financial Institutions

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There is insufficient information publicly available regarding Jordan's compliance with the Financial Action Task Force's recommendations relating to this Principle.

According to a 2007 report by the U.S. DoS, Article 93 in the Banking Law of 2000 covers money laundering with respect to suspicious transactions and requires that banks alert the Central Bank of any such transactions. The report further indicates that, in 2006, the Central Bank of Jordan issued instructions to banks to comply with international best practices in the areas of customer due diligence (CDD), politically exposed persons, wire transfers, record keeping, suspicious transactions reporting (STR), and internal controls of banks. Also, Article 147 of the Jordanian Penal Code prohibits banking transactions related to terrorist activity.

According to the 2007 U.S. DoS report, Jordanian officials have indicated that financial institutions do file STRs and cooperates with the government regarding information on drug trafficking and terrorist financing; however, there has not been any prosecution or convictions for money laundering in the country.

3. Preventive Measures - Designated non-Financial Business and Professions

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There is insufficient information publicly available regarding Jordan's compliance with the Financial Action Task Force's recommendations relating to this Principle.

4. Legal Person and Arrangements & Non-Profit Organizations

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There is insufficient information publicly available regarding Jordan's compliance with the Financial Action Task Force's recommendations relating to this Principle.

According to a 2007 U.S. DoS report, charitable organizations are governed by the Social Organizations Act of 1966 and are subject to regulation by the Ministry of Social Development. The report also indicates that anybody collecting donations, subscriptions, or contributions for an illicit organization can be imprisoned for a period not exceeding 6 months, according to the Penal Code. The donations collected by charitable organizations are required to be deposited in a bank, and the Central Bank, by law (Instructions No. 29 of 2006), is required to verify the identity of any charitable organization that opens a bank account.

5. National and International Co-operation

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There is insufficient information publicly available regarding Jordan's compliance with the Financial Action Task Force's (FATF) recommendations relating to this Principle.

The 2007 U.S. DoS report indicates that Jordan is not party to the United Nations Convention against Transnational Organized Crime. However, the U.S. DoS report does indicate that Jordan is a party to the UN convention for Suppression of the Financing of Terrorism. The U.S. DoS report does note that Jordan is a charter member of the Middle East and North Africa Financial Action Task Force (MENAFATF), which is a FATF-style regional body.