Circular Regarding Registration Procedures for Jordanian Cooperative Societies No. 8340/4/2/10 dated 2013/7/2

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

No.: 8340/4/2/10
Date: 22/5/1434 AH
Corresponding to: 4/4/2013 AD

Circular to Banks Operating in the Kingdom

Greetings,

We attach herewith a copy of the letter from the Jordanian Co-operative Corporation No. (3/3/1095) dated 29/4/2013 regarding the registration procedures for Jordanian Cooperative Societies.

We request that you inform us of your approval to postpone the due diligence procedures stipulated in the Anti-Money Laundering and Counter-Terrorist Financing Instructions No. (51/2010) dated 23/11/2010 when opening accounts for these societies for establishment purposes, emphasizing the necessity to complete the requirements after the establishment procedures stipulated in the Cooperative Societies Law have concluded.

Please accept our highest respect,

The Governor
Dr. Ziad Frieze

• Attachment
• Copy to the Honorable Director General of the Jordanian Co-operative Corporation.
• P.O. Box (1343) Amman.

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In the Name of Allah, the Most Gracious, the Most Merciful Jordanian Co-operative Corporation Jordan Co - Operative Corp.
Amman - Amman

No.: 3/3/1095/1
Date:
Corresponding to: 29/4/2013

Referring to the Deputy Governor
Mr. Dr. Maher Al-Sheikh Hassan

His Excellency the Governor of the Central Bank Subject: Cooperative Societies Under Establishment (Opening Initial Accounts)

I request to inform Your Excellency that it is the duty of the Jordanian Co-operative Corporation (a public institution) to register and supervise cooperative societies based on the provisions of Article (4) of the Cooperation Law No. (18) of 1997.

And that the registration procedures for cooperative societies have been stipulated in the Cooperative Societies Regulation No. 13 of 1980 and the instructions issued pursuant to it.

Among the establishment procedures in force is that the value of (Paid Shares) from the Founders be deposited in any bank chosen by the Founding Body, pursuant to an official letter issued by the Jordanian Co-operative Corporation / the relevant Directorate addressed to the chosen bank to open an account (Cooperative ........... / Under Establishment). The value of paid shares is deposited in this account, and the Preparatory Committee elected by the Founding Body or others are not permitted to withdraw from this account, but only to deposit the value of shares, in order to protect the funds of the Founders until the legal establishment procedures are completed and the Cooperative obtains its certificate and registration number in due order, and elects a management committee for the Cooperative and authorized signatories in due order. Afterward, an official letter is issued by the Jordanian Co-operative Corporation to the relevant bank stating that the authorized signatories are the elected individuals (Management Committee) (two or three of them) according to the actual situation.

What is stated above is the procedure followed for more than thirty years regarding the procedures for protecting the funds of the Founders. However, the Jordanian Co-operative Corporation was recently surprised by the refusal of banks to open accounts for (Cooperative Societies / Under Establishment) except in the presence of the names of the authorized signatories, which cannot be achieved at the establishment stage, as the signatories are the elected

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In the Name of Allah, the Most Gracious, the Most Merciful Jordanian Co-operative Corporation Jordan Co - Operative Corp.
Amman - Amman

No.:
Date:
Corresponding to:

The Management Committee, which is the procedure that takes place after completing the legal establishment procedures, due to the different nature of the Cooperative Society compared to any other entity (Companies).

Therefore, and referring to the above, I request Your Excellency to kindly exempt Cooperative Societies from the aforementioned instructions due to their importance.

Please note that, according to the actual situation, the establishment of Cooperative Societies is carried out by a category of low-income individuals, employees, and workers. The Jordanian Co-operative Corporation, in accordance with its legally stipulated duties, monitors and supervises the accounts of these societies from establishment and during their operation, for your information.

Please accept our highest respect,

Acting Director General
Eng. Mohammed Turki Al-Rousan

Amman - Tel: 5665170 / 76 - Fax: 5686902 - P.O. Box 1343 - Cable Address: "Aloun" - Amman - Jordan Amman - Tel. 5665170 / 76 - Fax: 5686902 - P.O.Box: 1343 - Cable Address "Aloun" - Amman - Jordan E-mail: AlounJcc@nic.net.jo Web site: www.jcc.gov.jo