Money Laundering and Banking Secrecy in the Jordanian Legislation

• Author: Ahmed Adnan Al-Nuemat
• Position: AL-Balqa Applied University
• Pages: 117-126

JICLT

Journal of International Commer cial Law and Technology

Vol.9, No.2 (2014)

117

Money Laundering and Banking Secrecy in the

Jordanian Legislation

Ahmed Adnan Al-Nuemat

AL-Balqa Applied University

Ahmed_alnuemat@yahoo.com

Abstract. Crimes targeting to damage the property of natural and legal individuals

including states are in existence while the objective of people, groups and the entire

organizations when committing crimes is illegal property gain in the structure of national,

but also of global crime. However, they are insufficient hence they attempt to decriminalize

money or other property earned in such manner, e.g. by in serting them int o lawful

operations and flows. Nonetheless, perpetrators of this kind of crime attempt to hide the

right source of money or profit earned in such manner using all means possible.Banking

secrecy is one of the main barriers that stand in front of anti-money laundering because it

comprises of a barrier to access to bank deposits, and a protection for doubtful funds since

it is one of th e conventional r ules pertinent to the work banks, where clients’ secrets and

banking operations are saved by Bank’s commitment by law and custom unless there is

provision in the law or in the agreement stating otherwise. This study is aimed at indicating

the most significant stages and techniques of money laundering at banking institutions in

Jordan and also discussing the function of t he Jordanian banks in the light of th e pertinent

legislation

1. Introduction

The topic of this research is regarding money laundering which is one of th e major problems being faced

by world economy. The world has observed in recent years a significant development in various life

aspects. The techniques of committing crimes have been developed at the same time as well. Money

laundering is one of the main ha zardous crimes that can obliterate the financial and economical systems.

All countries are dedicated towards eliminating or r educing this trouble a nd are attempting to cooperate

with each other to solve it.

The most significant sectors where money laundering takes place are banks. They also have th e most

popular task of eliminating unlawful funds from unlawful sources and bring corroboration upon them

because of their divided banking operations and the rate of its overlap.

The roles of banks are supposed to be pronounced with the development of banking operations. This

is due to the fact that the application of modern technological techniques is not essentially banks informed

by sources of this type of funds. However, the modern electronic services can be applied in the violation

of the law particularly because most of those operations are automatically and the controlling likelihood

require more efforts, costs and time, in addition to the laws that provide secret banking accounts. This is

because extra problems encountered by banks in this regards are caused by their detention categorically in

special circumstances.

In this research, the study will be concerned with the money laundering its stages, and the function of

banks in those procedures. It will also discuss h ow Jordanian legislation is using these pr ocedures to

indicate and control the imbalances and deficiencies suppose they have any.

In addition, this r esearch will study probability of increasing the banking secrecy in the war against

money laundering. The study will discuss anal ytical pause for attempting to study th e reason of escaping

from the privacy and the positive impacts and negative impacts on the exit.