Money Laundering in Jordan: Challenges and Strategies for Combating the Crime

Money laundering is a critical threat to global financial systems, allowing criminals to disguise illicit proceeds as legitimate funds. It facilitates other crimes, such as terrorism, drug trafficking, and human trafficking, making its prevention a priority at both national and international levels. This article delves into the methods criminals use to launder money, challenges faced by authorities in Jordan, penalties under Jordanian law, and steps to secure acquittal in money laundering cases.

Methods of Money Laundering

Criminals employ various techniques to launder illicit funds, including:

1. Use of Financial Institutions: Depositing small amounts across multiple accounts or using shell companies to conceal the origin of funds.
2. Asset Investment: Purchasing high-value items like real estate, luxury cars, or jewelry to hide illicit proceeds.
3. Cross-Border Transfers: Transferring money through exchange houses or bank transactions, making tracking difficult.
4. Casinos: Depositing and withdrawing illicit funds as legitimate winnings.
5. Shell Companies: Creating entities with no real business activities to obscure money sources.
6. International Trade: Manipulating invoices and commodity prices to disguise the movement of illegal funds.

Challenges Facing Anti-Money Laundering Efforts in Jordan

1. Evolving Techniques

Criminals constantly develop new laundering methods, leveraging technology such as cryptocurrencies and online platforms to obscure transactions.

2. Resource Limitations

Anti-money laundering (AML) authorities often lack sufficient financial, human, and technological resources, hindering their ability to process large volumes of financial data and track suspicious activities.

3. International Cooperation

Money laundering transcends borders, requiring seamless international collaboration. However, differences in legal systems and regulatory frameworks complicate coordination.

4. Banking Secrecy

Strict banking confidentiality laws can obstruct access to essential information, requiring AML authorities to navigate complex legal channels.

5. Non-Financial Sectors

Industries like real estate, jewelry, and art trade are ripe for exploitation due to limited oversight compared to regulated financial institutions.

6. Legal and Regulatory Hurdles

Proving the illicit origin of funds is challenging, with offenders often exploiting loopholes in the law to avoid conviction.

7. Corruption

Corrupt officials may facilitate laundering operations, undermining AML efforts.

8. Lack of Awareness

Limited public understanding of money laundering’s impact reduces vigilance in reporting suspicious activities.

Jordan’s Vulnerabilities to Money Laundering

Despite significant efforts, Jordan faces unique vulnerabilities:

• Geopolitical Location: Proximity to conflict zones increases exposure to illicit financial flows.
• Cash-Based Economy: Heavy reliance on cash transactions hampers tracking and detection.
• Real Estate Sector: Real estate offers opportunities for laundering, with gaps in verifying investor identities.
• Shell Companies: These entities are often used to obscure fund sources, posing challenges for detection.
• Legislative Gaps: While Jordan has AML laws, some require updates to address modern laundering techniques.
• Awareness Deficiency: Many remain unaware of money laundering’s repercussions, weakening preventive measures.

Jordan’s Anti-Money Laundering Efforts

Jordan has undertaken robust measures to combat money laundering:

1. Legislative Framework: Enacted the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2007, with ongoing updates.
2. Centralized Oversight: Established the Anti-Money Laundering and Counter-Terrorist Financing Unit at the Central Bank of Jordan.
3. International Collaboration: Active participation in global and regional initiatives to counter financial crimes.

Penalties for Money Laundering in Jordan

Penalties under Jordanian law vary depending on the associated crime:

1. For Misdemeanor-Related Proceeds:
   • Imprisonment: 1–3 years.
   • Fine: Not less than the laundered amount.
2. For Felony-Related Proceeds:
   • Temporary hard labor: Minimum 5 years.
   • Fine: Not less than the laundered amount.
3. For Terrorist Financing:
   • Imprisonment: 10–20 years.
   • Fine: At least double the laundered amount.

In all cases, penalties may double if the offender is a financial institution employee. Courts may also order the confiscation of illicit funds and their proceeds, regardless of ownership.

Steps to Achieve Acquittal in Money Laundering Cases

Securing an acquittal requires a strategic defense:

1. Hire a Specialist Lawyer: Engage a lawyer experienced in money laundering cases to analyze evidence and build a robust defense.
2. Disprove Evidence: Provide documentation or witnesses to verify the legitimacy of funds.
3. Prove Lack of Knowledge: Demonstrate unawareness of the illicit origins of funds.
4. Show Good Faith: Prove that funds were used for lawful purposes.
5. Cooperate with Authorities: Fully comply with court requests and avoid self-incrimination.
6. File an Appeal: If convicted, appeal to a higher court with a stronger defense.

Additional Tips

• Retain all financial documents related to the case for future reference, ensuring that each document is organized and readily accessible in case any discrepancies arise or further analysis is required.
• Avoid making statements to authorities without legal counsel.
• Be transparent with your lawyer for effective representation.

Leading Money Laundering Defense Lawyers in Jordan

Moayad Al-Thanibat stands out as one of Jordan’s most esteemed legal experts in money laundering cases. With a wealth of experience and in-depth knowledge of this intricate area of law, he is committed to delivering exceptional defense strategies and ensuring the protection of his clients’ rights with the highest level of professionalism and dedication.

Expert Legal Representation

For those facing money laundering charges in Jordan, Moayad Al-Thanibat, a seasoned defense lawyer, offers unparalleled expertise in navigating complex AML cases. His commitment ensures comprehensive defense strategies to safeguard client rights.

Money laundering undermines economies and public trust. Combating it requires collective efforts from governments, institutions, and individuals to uphold the integrity of financial systems.

Money Laundering crime in Jordan