Money Laundering and Banking Secrecy in the Jordanian Legislation

AuthorAhmed Adnan Al-Nuemat
PositionAL-Balqa Applied University
Journal of International Commer cial Law and Technology
Vol.9, No.2 (2014)
Money Laundering and Banking Secrecy in the
Jordanian Legislation
Ahmed Adnan Al-Nuemat
AL-Balqa Applied University
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
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.

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