Jordan endorses anti-money laundering law to combat terrorism

the International Herald Tribune / AP ^ | 5/6/07

[Valin]

AMMAN, Jordan: Jordan's Parliament endorsed tough money laundering legislation Sunday, saying it was in line with efforts to fight terrorism.

Following the Nov. 9, 2005 triple hotel blasts in Amman, King Abdullah II instructed his government to tighten up laws to make it more difficult for terrorists to carry out attacks. Al-Qaida in Iraq claimed responsibility for the hotel bombings, which killed 63 people, including three Iraqi suicide bombers, and were the deadliest in Jordan's recent history.

Jordan has no record of major money laundering incidents. But there are allegations that the country's largest financial institution, Arab Bank, was involved in funneling Saudi money to families of Palestinian suicide bombers.

Although the bank has denied the charges, a U.S. district court judge ruled in New York four months ago that Israelis and other foreign nationals can pursue claims in U.S. courts against Arab Bank.

Jordan, like other Arab countries, has been under severe U.S. pressure to tighten laws against money laundering.

Sunday's legislation, called the Law to Combat Money Laundering, follows several other bills aimed at combating terrorism and militancy.

The bill passed with a majority vote in the 110-seat Chamber of Deputies, which convened last month for a special summer session. Sunday's session was expected to be last before parliament's four-year term expires. Elections are slated for later this year.

The money laundering law encompasses a wide range of offenses, including drug and human trafficking, sex trade, arms smuggling, prostitution and avoiding customs levies.

It imposes harsh penalties on all involved, not just the main perpetrator, of five-year prison terms with hard labor and a fine of up to 1 million Jordanian dinars (US$1.4 million, €1.03 million). Repeat offenders receive double the penalty.