VZCZCXYZ0024
RR RUEHWEB

DE RUEHAM #1927 1830433
ZNR UUUUU ZZH
R 010433Z JUL 08
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 2979
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHTV/AMEMBASSY TEL AVIV 1243
RUEHJM/AMCONSUL JERUSALEM 5080

UNCLAS AMMAN 001927 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV EFIN JO
SUBJECT: APPLICATION FOR OPIC FINANCE: ARAB BANK PLC, CAIRO AMMAN 
BANK AND THE HOUSING BANK FOR TRADE AND FINANCE 
 
REF:  STATE 067543 
 
¶1.  As requested in reftel, this cable provides information on Arab 
Bank PLC, Cairo Amman Bank and the Housing Bank for Trade and 
Finance.  Post is not aware of any recent events in Jordan that 
would prohibit OPIC from providing financing to the three banks. 
All three borrowers are reputable members of Jordan's Association of 
Banks.  The housing initiative has received widespread and positive 
media attention, and is supported by the Ministry of Public Works 
and the Royal Court. 
 
¶2.  The Embassy does not have any information that these banks or 
their investors have known ties to terrorists, money laundering, 
corruption, or violations of the law or commercial/developmental 
considerations.  However, as has been widely reported in the press, 
in August 2005, the New York Branch of Arab Bank was assessed a $24 
million civil penalty by FinCEN and the OCC for violation of the 
Bank Secrecy Act. Arab Bank paid the penalty without accepting 
blame.  The Branch was converted to federal control. As has also 
been reported, in January 2007, the U.S. District Court in New York 
issued a ruling denying a motion to dismiss a civil action case 
(Almog et al.v. Arab Bank, PLC, U.S. Court, Eastern District of New 
York) against Arab Bank concerning litigation related to claims by 
Israeli survivors of Terrorism that the bank facilitated money 
laundering and payments from a Saudi Arabian committee to assist the 
beneficiaries of suicide bombers thus creating an incentive for 
suicide bombings.  This case is ongoing. However, Arab Bank has been 
active in anti-money laundering (AML) efforts inside its bank, and 
is the leader among Jordanian banks for AML and countering the 
financing of terrorism (CFT).  Additional background on the banks 
follows: 
 
¶A.  Arab Bank PLC:  The Arab Bank was founded in 1930 in Jerusalem 
by the late Abdul Hamid Shoman with a capital of 15,000 Palestinian 
pounds.  Following the 1948 Arab-Israeli war and due to the 
political stability in the region, the Arab Bank moved it 
headquarters to Amman.  On May 29, 2008, the bank's Amman Stock 
Exchange (ASE) market capitalization stood at JD 10.57 billion 
($14.93 billion).  It is the largest bank in Jordan, with its market 
capital representing about 40% of the entire ASE.  In 2007, Arab 
Bank's revenues grew 18.1% to $1.67 billion and net profit for the 
year increased by 23.8% to $762.8 million.  At the end of 2007, 
total assets were $38.33 billion.  Arab Bank has received an "A-" 
rating from Standard & Poors for long term and "A-2" for short term 
counterparty credit ratings.  It has received a "A-" from Fitch and 
"A3" from Moody's. 
 
¶B.  Housing Bank for Trade and Finance (HBTF):  The Housing Bank for 
Trade and Finance was established in 1973, specializing in housing 
and real estate financing.  In the early 1980s, the bank began to 
offer commercial banking services and by 1997 the bank had converted 
into a full-fledged commercial bank.  HBTF is the second largest 
bank in Jordan.  In 2007, HBTF's net profit rose 18% to $163 
million; its operational revenues rose 18% to $338 million; and its 
assets rose 23% to $7.1 billion.  HBTF is also the agent bank for 
Western Union in Jordan.  Western Union has very high standards for 
customer due diligence/know your customer (CDD/KYC) as a money 
services business (MSB). 
 
 
¶C.  Cairo Amman Bank (CAB):  The Cairo Amman Bank was established in 
1960 as a public shareholding company.  CAB is the seventh-largest 
bank in Jordan, controlling about 5% of consolidated banking system 
assets and having a market share of about 3.6% of Jordanian deposits 
and 4.4% of loans.  It has 55 branches in Jordan, through which it 
provides a broad range of retail and corporate financial services. 
CAB is one of the most active Jordanian banks in the Palestinian 
territories, where it has 17 branches and a market share of about 
12% of deposits and 7% of loans.  CAB's market capitalization is 
$351 million. 
 
Visit Amman's Classified Website at: 
http://www.state.sgov.gov/p/nea/amman 
 
Hale