Proceedings of the 7th World Conference on Social Sciences Studies
Year: 2025
DOI:
[PDF]
International Standards on the Promotion and Protection of Non-Profit Companies against Misusing for Financing Terrorism Purposes: The Case of Jordan
Raghad Al-Shareedah, Karoli
ABSTRACT:
Following the events of September 11, 2001, the international community stood in solidarity and displayed a united front against the scourge of terrorism. A key element of the international community’s response to terrorism has been the gradual development, since 1963, of the legal infrastructure of terrorism-related conventions and protocols, simply meaning multilateral treaties and supplemental agreements and a series of Security Council resolutions relating to terrorism to adopt resolutions legally binding on all Member States of the United Nations. Thus, nineteen international conventions, protocols, and treaties have been developed to impel, facilitate, and govern collaboration between and among signatory countries concerning terrorism and terrorist financing.
Non-profit companies are among the many vehicles identified as potentially vulnerable to terrorism financing abuse as they complement the government’s role in assisting those in need.
Terrorist organizations to conceal or support their terrorist activities, have been able to exploit the characteristics the Non-Profit organizations enjoy such as gaining public trust and having substantial sources of revenue. Additionally, some non-profit organizations have a global presence that provides them with a framework to conduct operations both locally and internationally, often in or near areas most susceptible to terrorist activity.
When discussing the issue of terrorism finance within domestic codes, legislators are advised to consider international obligations derived from the sources including the International Convention for the Suppression of the Financing of Terrorism of 1999, Security Council Resolutions represented by Resolution 1373 (2001), the Special Recommendations of the Financial Action Task Force (FATF), Other pertinent resolutions or conventions adopted by relevant regional organizations.
Jordan as a member of the Middle East & North Africa Financial Action Task Force (MENAFATF) has been a key partner in regional and international efforts to combat terrorism and counter antimoney laundering. Legislative reforms were among the priorities for Jordan to comply with the international standards, including the aforementioned convention and FATF recommendations, and reflecting them to the relevant legislation.
Recently, Jordan was announced to be under increased monitoring by FATF and pledged to promptly address the identified shortcomings within specified deadlines aimed at combating terrorist financing. In 2021, Jordan’s reform journey kicked off to correspond with international standards by amending the Anti-Money Laundering and Counter-Terrorist Financing Law No.20 of 2021 and the Company’s Law No. 19 of 2021.
The importance of amending the legislation in Jordan lies in the importance of legal texts related to combating the crime of terrorist financing, to dry up the sources of such crime and prevent its occurrence.
To conclude, several criminal and non-criminal standards have to be incorporated in any jurisdiction’s legislative framework, particularly Jordan to align with international standards and international treaties that provide an even stronger legal framework to combat terrorism, but fully comply with the customary and treaty obligations under any legal regimes.
keywords: Non-Profit companies, financing terrorism, international standards