Money Laundering crime in Jordan

Complex Challenges and Ways to Address Them

Money laundering is an extremely dangerous threat to the world’s financial system, allowing criminals to mask the proceeds of their criminal activities and dispose of them as if they were legitimate funds. Combating this crime at both international and national levels is a top priority because it is related to almost all other crimes, such as terrorism, drug trafficking, and human trafficking.

This article discusses the usual methods criminals use to give a clean appearance to their money and the challenges anti-money laundering authorities face, with a focus on Jordan. It also discusses the punishments for money laundering in Jordan and the steps involved in securing an acquittal in a money laundering case.

Common Methods Used by Criminals to Launder Money
Financial institutions: Small deposits in various bank accounts, or the use of shell firms to mask the actual origin of the money. Investment in assets: Buying property, paintings, jewelry, or expensive cars to camouflage illicit funds. International transfer: The transferring of money across borders using exchange houses or bank transfers that can hardly be traced. Casinos: Depositing illicit funds at casinos and withdrawing them after some time as apparently valid winnings.
Shell companies: Establishing shell companies with no real business activity, used solely to conceal the source of funds.
International trade: Using forged invoices or manipulating commodity prices in international trade to disguise the movement of illicit funds.
Difficulties Facing Anti-Money Laundering Authorities

Anti-money laundering authorities face numerous difficulties and challenges, including:

Evolving money-laundering methods: Criminals continually evolve and devise new methods of laundering money, making it hard for anti-money laundering authorities to keep pace with them and detect such cases. They utilize technological advances, mainly cryptocurrencies and online platforms, to hide and transfer funds in ways that are very hard to track.
Lack of resources: Anti-money laundering authorities require enormous financial, human, and technological resources to carry out their tasks effectively. These agencies more often than not face a shortage in all these resources, which limits their capacity for analysis of large volumes of financial data and tracking suspicious transactions.
International Cooperation: Money Laundering is an interborder crime; its control necessitates effective international cooperation. In international cooperation, challenges in the difference in legislations and regulations of the states, information exchange become critical.
Banking Secrecy: Banking secrecy laws protect customer information, which hinders the anti-money laundering authorities in getting access to information that would aid in identifying financial crimes. Reconciling anti-money laundering efforts with the protection of banking secrecy involves intricate legal procedures.
Non-financial sector: Non-financial sectors like real estate, jewelry, automobiles, and art trade are the potential playgrounds for money launderers. It is tough for anti-money laundering authorities to monitor these sectors as they do not fall under any regulatory oversight like financial institutions.
Legal challenges: It is often hard to prove the illicit origin of funds in order to convict the criminals for money laundering offenses. Criminals may use legal loopholes to get away from punishments.
Corruption: Corruption makes money laundering easier and hampers efforts to fight it. Some officials may be involved in facilitating money laundering activities for bribes or other benefits.
Lack of awareness: Lack of awareness about the gravity of money laundering is one of the major stumbling blocks in fighting money laundering. The public and institutions must be made aware of the importance of reporting any suspicious activity.

Money laundering is fought through the collaborative work of all relevant authorities, effective international cooperation, keeping pace with technological developments, and strengthening oversight over all sectors vulnerable to this crime.

Jordan’s Challenges in Combating Money Laundering

Despite the strenuous efforts exerted by Jordan to combat money laundering and terrorist financing, Jordan is vulnerable to these crimes due to many factors such as:

Geographical location: Jordan borders countries that are in the middle of conflicts and political tensions, making it susceptible to money smuggling and terrorist financing. Shared borders with other countries facilitate the transfer of illicit funds.
Cash-based economy: Jordan’s economy remains highly cash-based; most transactions take place in the form of cash, making monitoring and detecting money laundering difficult. This perpetuates traditional anti-money laundering techniques such as depositing small sums through multiple accounts or purchasing an asset with cash.
Real estate sector: The real estate sector generally presents an attractive avenue to money launderers in Jordan due to the possibility it offers for camouflaging illicit funds through property purchasing. Reports indicate gaps exist in procedures for verifying identity of investors in the real estate sector.
Shell companies: Shell companies are used in Jordan to conceal the source of illicit funds and facilitate money laundering. Official bodies may face difficulty detecting these companies and prosecuting their owners.
Legislative and regulatory challenges: Despite the existence of an anti-money laundering law in Jordan, challenges remain in its application and implementation. Some legislation may need updating to keep pace with developments in money laundering methods.
Lack of awareness: the seriousness of money laundering and its dire consequences are not widely known by some sections of the public and institutions. Awareness of the importance of combating money laundering is crucial in taming this crime.
Jordan’s Efforts in Combating Money Laundering

Jordan is making serious efforts in combating money laundering and terrorist financing through strengthening legislation, oversight, and international cooperation. Jordan established an Anti-Money Laundering and Counter-Terrorist Financing Unit at the Central Bank of Jordan, which plays a very important role in fighting these crimes. Jordan participates in numerous regional and international initiatives to combat money laundering and terrorist financing.

Money laundering combating in Jordan needs the combination of efforts by all stakeholders, more effective coordination between the public and private sectors, being in step with technical developments, and increasing awareness about the gravity of the crime.

Penalty for Money Laundering in Jordan

The punishment for money laundering in Jordan is governed by the Anti-Money Laundering and Counter-Terrorist Financing Law No. 20 of 2007 and its amendments; it is different based on the nature of the crime associated with money laundering.

If the proceeds of the money laundering offense result from a misdemeanor:
The perpetrator of the money laundering offense is punished by imprisonment for a period not less than one year and not exceeding three years.
Alongside a fine not less than the value of the money subject to the crime.
If the proceeds of the money laundering offense result from a felony:
The perpetrator of the money laundering offense is punished by temporary hard labor for no less than five years.
In addition to a fine of no less than the value of the money subject to the crime.
In all cases:
The court may double the penalty if the perpetrator of the crime is an employee of a financial institution or a person legally responsible for combating money laundering.
The court can request the confiscation of the funds subject to the crime and their proceeds, whether owned by the convicted person or not.
Increased penalty in the case of terrorist financing:
The penalty is increased to no less than ten years of imprisonment and no more than twenty years of imprisonment in the case where the money laundering offense is linked to a terrorist financing crime.
Alongside a fine of no less than twice the value of the funds subject to the crime.

It is worth noting that Jordanian law punishes the attempt to commit the crime of money laundering with the same penalty stipulated for the completed crime, and punishes anyone who assists, incites, or agrees to commit the crime of money laundering. Jordanian law has adopted a strict approach in combating money laundering to protect the national economy, combat organized crime, and finance terrorism.

Acquittal in a Case of Money Laundering

Acquittal in money laundering is hard to achieve, and to obtain it, one needs to refute the evidence presented by the public prosecutor, prove the negation of a predicate offense or lack of knowledge of the illicit source of funds, and prove good faith and the use of funds for legitimate purposes.

To increase your chances of being acquitted, you have to do the following:

Engage a specialized lawyer: You will have to hire a lawyer who has specialized in money laundering cases and with experience in the same field. The lawyer will go through the case file, analyze the evidence presented by the public prosecutor, and build a strong defense to prove your innocence.
Disprove the evidence: You need to provide solid evidence to disprove the charges against you and prove that the money involved came from a legitimate source. This may involve providing documents proving the source of the funds or calling witnesses to testify to the legitimacy of these funds.
Prove lack of knowledge: If the funds in question are illicit, you must prove that you were not aware of their illicit source. This may include providing evidence that you obtained these funds from another person without realizing their true source.
Prove good faith: You have to prove your good faith and that you did not intend to commit the crime of money laundering. This may include providing evidence that you used the funds for legitimate purposes, such as buying a home or starting a business.
Cooperate with the court: You should cooperate with the court and provide it with all the information and documents requested. It is not recommended to make any statements that may be used against you in court.
Appeal: In case a conviction is issued, you are entitled to appeal the judgment before a higher court. The counsel will analyze the judgment, provide the motives of the appeal, and further defend you before the Court of Appeal.

However, you have to know that an acquittal in money laundering cases is not easy, and it needs a great effort from the lawyer and the defendant and strong evidence to prove your innocence.

Additional Tips

Keep all documents and correspondence related to the funds in question.
Do not make any confessions to the police or the public prosecutor without your lawyer present.
Be open with your attorney and provide him with all information related to the case.

Remember, fighting against money laundering is on the agenda of almost every country, and punishments for such crimes are harsh. That’s why it is recommended to take all possible precautions to avoid even the least suspicion of involvement in money laundering crimes.

Best Money Laundering defence Lawyers in Jordan

Specialized lawyer Moayad Al-Thanibat is among the well-known lawyers with a particular interest in the law relating to the crime of money laundering in Jordan. He possesses great expertise and profound knowledge in that field and endeavors to extend the best defense to ensure his clients’ rights.