Regulatory Alerts2001-04-16
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Central Bank of Jordan Bonded Services Instructions Circular No. 7/2001
The Central Bank of Jordan mandates that private bonded services introduced by banks are considered part of bank business only when stored goods guarantee credit facilities for the client. The Circular explicitly prohibits banks from charging fees for storing goods belonging to clients or other persons unless the specific guarantee condition is met.
No. 10/2/3/3/6644 Date: April 16, 2001 Bonded Services Instructions Circular No. (7/2001) Issued by the Central Bank of Jordan with Pursuant to the provisions of the article (99/B) of the Banking law. With Pursuant to the provisions of the articles (37/A/13) of the Banking Law no. (28) of the year 2000, I have decided the following: 1- Private bonded services introduced by banks are considered as an activity related to bank’s business as long as the goods stored in this bonded represent a guarantee for the credit facilities extended to the client whose the goods belong to. 2- A paid charge storing of the goods belonging to clients or to any other person is not allowed unless it matches the case stated in the first clause.