Anti‐terrorist finance provisions in Jordan: important step but insufficient
| DOI | https://doi.org/10.1108/13685200710746884 |
| Date | 15 May 2007 |
| Published date | 15 May 2007 |
| Pages | 180-188 |
| Author | Bashar H. Malkawi,Hikmet O. Malkawi |
| Subject Matter | Accounting & finance |
Anti-terrorist finance provisions
in Jordan: important step
but insufficient
Bashar H. Malkawi
Faculty of Economics, Hashemite University, Zarqa, Jordan, and
Hikmet O. Malkawi
Yarmouk University, Jordan and Cooperative Institute, Amman, Jordan
Abstract
Purpose – The purpose of this paper is to examine the anti-terrorist finance provisions in the
Penal Law as well as the vulnerabilities in place that hamper more effective regime.
Design/methodology/approach – The paper identifies the pre-September 11 legal structure in
Jordan regarding terrorist finance. Since, then the amended Penal Law, promulgated on October 8,
2001, has emerged as the principal tool in addressing terrorist finance activities. The paper is divided
into five sections coveri ng pre-existing statut ory provisions on terror ist finance, Jordan’s
counterterrorist financing regime including money laundering law and directives, the anti-terrorist
finance provisions in the Penal with its constituent elements, Jordan’s accession to the United Nations
Convention for the Suppression of the Financing of Terrorism, and finally the paper provides a set of
conclusions.
Findings – There are still many loopholes to close in Jordan’s anti-terrorist finance initiatives. There
is a need for greater enforcement of existing provisions with an eye to expanding the scope of article
147(2) of the Penal Law to include Islamic banks, hawala, charities, and zakat. A clear definition of the
term “terrorist activity” should be supplied in article 147(2) and penalties for terrorist finance offense
should be tightened.
Research limitations/implications – Lack of publications or research on the subject of terrorist
finance in Jordan in Arabic.
Practical implications – This paper will be very helpful for any individual interested in the legal
regime of anti-terrorist financing as it exists in Jordan.
Originality/value – This paper meets a need for an understanding of the Jordanian legal regime as
applied to anti-terrorist financing and offers insights to lawyers and academics.
Keywords Terrorism, Financing,Laws and legislation, Jordan
Paper type Research paper
1. Introduction
Preventing terrorist finance may prove as a difficult task. The money comes from
enterprises that range from legitimate businesses such as charitable entities to
illegitimate activities like smuggling and intellectual property theft (Pietrucha and
Garduno, 2003). Terrorists move money through complex wire transfers and
unregulated alternative remittance systems. They also physically carry money across
borders. The amounts involved can be hard to detect.
Yet despite these difficulties, Jordan considers the interruption of terrorist finance
one of its top priorities. The September 11, 2001 attacks on the USA accelerated the
trend toward ever greater authority in Jordan to move on against terrorist-related
offenses. Moreover, the crackdown in 2005 on the Arab Bank, Jordan’s largest bank,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
JMLC
10,2
180
Journal of Money Laundering Control
Vol. 10 No. 2, 2007
pp. 180-188
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685200710746884
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