Jordan Times
Tuesday, March 30, 2004

Senate endorses temporary Frozen Assets Management Law

AMMAN (Petra) — The Senate on Monday endorsed a temporary law which sanctions a government move to freeze Iraqi and other assets in Jordanian banks.

The senators maintained that the temporary Frozen Assets Management Law No. 33 for the year 2003 serves Jordan's national interests. They said the decision is justified because it is meant to protect the local banking sector from repercussions of exceptional developments in Iraq in the aftermath of the war.

“The government urgently enacted the law to protect these assets and safeguard the interests” of depositing countries.

The law provides for the establishment of an independent fund to manage the frozen assets, which are safeguarded by law against any confiscation.

The fund is entitled to legally defend these assets against any legal claim filed by local, regional or international parties.

The Council of Ministers holds the right to dissolve the fund and transfer the assets to the treasury if deemed in the best interest of the Kingdom.

The Senate agreed with the Lower House decision to reject related legislation, Frozen Assets Law for the year 2003, as its provisions were consolidated in the Frozen Assets Management Law.

The Senate also endorsed the amended temporary Income Tax Law, drafted to correct imbalances in the area of taxation, including tax evasion.

The following temporary laws were also endorsed by the senators: The amended Law on Land and Real Estate Tax within Municipalities, the amended Water Authority Law and the amended General Sales Tax Law. The senators were officially informed of the Lower House's consent to changes they made to the National Production Protection Law.

During Monday's session, the Royal Decree announcing the recess of Parliament was read aloud.


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