Financial Crime World

Jordanian Government Halts Money Laundering Initiative Due to Public Policy Concerns

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The Jordanian government has suspended its efforts to monitor and prevent money laundering activities in the country, citing concerns over public policy.

Background

The initiative aimed to strengthen communication between operational elements and authorities to detect and prevent money laundering operations. However, it was halted due to concerns over bank secrecy laws.

Concerns Over Bank Secrecy Laws

According to sources, the government’s decision came after it became apparent that the current legislation would not allow for effective monitoring of financial transactions. Jordan’s banking secrecy laws were deemed to be hindering efforts to combat money laundering.

  • The Jordanian Penal Code No. 60 of 1960 and Central Bank of Jordan Law No.23 of 1971 provide penalties for violators of bank secrecy.
  • However, experts argue that these laws create an environment where money launderers can operate with impunity.

Experts’ Views

“We need to strike a balance between protecting customer confidentiality and preventing money laundering,” said a financial expert.

Anti-Money Laundering Advocates’ Concerns

The government’s decision has raised concerns among anti-money laundering advocates, who warn that the halt in efforts could lead to a resurgence of illegal activities.

  • “We urge the government to revisit its approach and work towards strengthening legislation to prevent money laundering,” said an anti-money laundering advocate.
  • “The current situation is a setback for Jordan’s efforts to combat financial crimes.”

Government Response

The government has announced that it will review reports formulated on a yearly basis and give consideration to proposed steps to ensure that money laundering is not facilitated by any element.

  • In the meantime, the Anti-Money Laundering unit has been instructed to focus on reviewing existing cases and implementing measures to prevent further illegal activities.