The Anti-Money Laundering Framework in Jordan
The Anti-Money Laundering Framework in Jordan: New Laws and Regulations
Bashar H. Malkawi*
I. Introduction
Money laundering is a major problem for Jordan and the international community. Laundering criminally-derived proceeds has become a lucrative and sophisticated business. Money laundering challenges the maintenance of order in Jordan and threatens the integrity and reliability of its financial institutions and commerce. In recognition of this pervasive problem, Jordan passed several laws and regulations. These laws and regulations, some of which are new, include the Law against Narcotic Drugs and Psychotropic Substances of 1988, Provisional Law on Monitoring Insurance Business of 2002, Central Bank Circular on Regulations of Anti-Money Laundering of 2006, and the new Anti-Money laundering Law of 2007. All these laws and regulations aim to decrease the level of financial crimes in Jordan and facilitate the development of a sound economy by attracting legitimate foreign investments. This article focuses on Jordan's adoption of anti-money laundering laws and regulations. Part II provides a brief introduction to money laundering. Part III discusses the history of Jordan's efforts to combat money laundering. In addition, it analyzes the new anti-money laundering law and identifies its weaknesses. Part IV provides an overview of the United States (U.S.) money laundering policies compared with those of Jordan. Part V concludes that while the new Jordanian laws and regulations facilitate attempts by the Jordanian government to curtail money laundering, further reform is necessary.
II. Money Laundering: Definition and Process One goal of every criminal is to get away clean. Money laundering hides the trail of illegal profits and hence aids the getaway. The term 'money laundering' is of recent and debated origin. Whatever the metaphoric source of the term, money laundering is the process by which one conceals the existence,
Bashar H. Malkawi*
I. Introduction
Money laundering is a major problem for Jordan and the international community. Laundering criminally-derived proceeds has become a lucrative and sophisticated business. Money laundering challenges the maintenance of order in Jordan and threatens the integrity and reliability of its financial institutions and commerce. In recognition of this pervasive problem, Jordan passed several laws and regulations. These laws and regulations, some of which are new, include the Law against Narcotic Drugs and Psychotropic Substances of 1988, Provisional Law on Monitoring Insurance Business of 2002, Central Bank Circular on Regulations of Anti-Money Laundering of 2006, and the new Anti-Money laundering Law of 2007. All these laws and regulations aim to decrease the level of financial crimes in Jordan and facilitate the development of a sound economy by attracting legitimate foreign investments. This article focuses on Jordan's adoption of anti-money laundering laws and regulations. Part II provides a brief introduction to money laundering. Part III discusses the history of Jordan's efforts to combat money laundering. In addition, it analyzes the new anti-money laundering law and identifies its weaknesses. Part IV provides an overview of the United States (U.S.) money laundering policies compared with those of Jordan. Part V concludes that while the new Jordanian laws and regulations facilitate attempts by the Jordanian government to curtail money laundering, further reform is necessary.
II. Money Laundering: Definition and Process One goal of every criminal is to get away clean. Money laundering hides the trail of illegal profits and hence aids the getaway. The term 'money laundering' is of recent and debated origin. Whatever the metaphoric source of the term, money laundering is the process by which one conceals the existence,