Convictions: 3 in 2013
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: NO Other mechanism: YES With other governments/jurisdictions: YES
The PA is an observer to the Middle East and North Africa Financial Action Task Force (MENAFATF), a FATF-style regional body. The PA has not undergone a mutual evaluation. ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:
The PA has effective laws and regulations to address money laundering, notably Anti-Monetary Laundering Law #9 of 2007 (AML Law). The penal code (which is Jordanian law) is outdated, and most of the predicate offenses for money laundering are not felonies under this law. The PA currently has no laws to specifically address terrorism, terrorist acts, or terrorism financing, per se, but amendments to address this lack in the AML Law currently are under consideration by the Cabinet and, once approved, could be signed into law by executive decree. Currently, cases considered terrorism are investigated and prosecuted under a specific crime and within the existing penal code, for example, crimes against the state, possession of illegal weapons, and conspiracy.
Although not a signatory, the PA has made efforts to implement the UNCAC. Although compliant with the UNTOC and the 1988 UN Drug Convention, the PA is not a signatory of these conventions. The PA is currently not in compliance with any UN convention related to terrorism, terrorist acts, or terrorism financing, or UN Resolutions 1267 or 1373.
KYC in the PA is controlled by AML Law and the PMA Law #2 of 1997. The PA has a very effective supervision and regulatory compliance function for financial institutions and non- financial businesses and professions (DNFBPs). The PMA is responsible for supervision and regulatory compliance of financial institutions and precious metal dealers. Recently, the PMA implemented effective controls over licensed money service businesses. The remaining DNFBPs are supervised by the Palestine Capital Market Authority.
The Financial Follow-Up Unit (FFU) is a fully functional financial intelligence unit with 16 employees and a computer system linking it with all 17 banks licensed to operate in the PA. The banks now file both suspicious transaction reports (STRs) and currency transaction reports
INCSR 2014 Volume II Money Laundering and Financial Crimes
(CTRs) electronically through this system. Filed reports decreased in 2013, as compared to 51 STRs and 389,317 CTRs filed in 2012. All covered entities must report any STR to the FFU. The FFU also has developed an Unusual Transaction Report (UTR), covering transactions that have not been articulated as suspicious but bear closer scrutiny. Although the FFU has adequate staffing, authority, and equipment, its full operational effectiveness has not been realized due, in part, to restrictions in the law. Article 31 of AML Law #7 of 2007 restricts information sharing between the FFU and any law enforcement agency, with the exception of the Attorney General’s Office. This lack of ability to share information and support with law enforcement has
minimized the FFU’s function and ability to support law enforcement.
Prosecutors within the Attorney General Office (AGO) are the chief investigators in PA, with all the powers of an investigative judge. The prosecutors’ lack of manpower and investigative experience has slowed the successful prosecution of AML cases. The PA has formed a multi- agency task force to address this problem, under which the AGO prosecutors will delegate authority to law enforcement agencies and to the FFU to more thoroughly investigate cases before they are brought before judges. The task force is expected to increase information sharing between law enforcement agencies and the FFU. Despite the noted problems, prosecutions increased in 2013 from 18 in 2012, as did convictions, of which there were none in 2012.
Italy
Italy’s economy is large both in the European and global context. Its financial and industrial sectors are significant. The proceeds of domestic organized crime groups, especially the Camorra, the ‘Ndrangheta, and the Mafia, operating across numerous economic sectors in Italy and abroad compose the main source of laundered funds. Numerous reports by Italian non- governmental organizations identify domestic organized crime as Italy’s largest enterprise. Drug trafficking is a primary source of income for Italy’s organized crime groups, which benefit from Italy’s geographic position and links to foreign criminal organizations in Eastern Europe, China, South America, and Africa. Other major sources of laundered money are proceeds from tax crimes, smuggling and sale of counterfeit goods, extortion, corruption, and usury. Based on limited evidence, the major sources of money for financing terrorism seem to be petty crime, document counterfeiting, and smuggling and sale of legal and contraband goods. Italy’s total black market is estimated to generate as much as 15 percent of GDP ($330 billion). A sizeable portion of this black market is for smuggled goods, with smuggled tobacco a major component. However, the largest use of this black market is for tax evasion by otherwise legitimate
commerce. Money laundering and terrorism financing in Italy occur in both the formal and the informal financial systems, as well as offshore.
For additional information focusing on terrorist financing, please refer to the Department of State’s Country Reports on Terrorism, which can be found at: http://www.state.gov/j/ct/rls/crt/ DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
Enhanced due diligence procedures for PEPs: Foreign: YES Domestic: NO KYC covered entities: Banks; the post office; electronic money transfer institutions; agents in financial instruments and services; investment firms; asset management companies; insurance companies; agencies providing tax collection services; stock brokers; financial intermediaries; lawyers; notaries; accountants; auditors; insurance intermediaries; loan brokers and collection agents; commercial advisors; trusts and company service providers; real estate brokers; entities that transport cash, securities, or valuables; entities that offer games and betting with cash prizes; and casinos
REPORTING REQUIREMENTS:
Number of STRs received and time frame: 34,458: January 1 – June 30, 2012 Number of CTRs received and time frame: Not applicable
STR covered entities: Banks; the post office; electronic money transfer institutions; agents in financial instruments and services; investment firms; asset management companies; insurance companies; agencies providing tax collection services; stock brokers; financial intermediaries; lawyers; notaries; accountants; auditors; insurance intermediaries; loan brokers and collection agents; commercial advisors; trusts and company service providers; real estate brokers; entities that transport cash, securities, or valuables; auctioneers and dealers of precious metals, stones, antiques, and art; entities that offer games and betting with cash prizes; and casinos
MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS: