Central Bank of Jordan Circular on Final Financial Statements for Licensed Exchange Companies

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

Number: 9/3/14 Date: 10 Jumuada al-Awwal 1441 AH Corresponding to: 5 January 2020 AD

Circular to Licensed Exchange Companies

Greetings,

Based on the provisions of Article (22/b) of the Exchange Business Law No. (44) of 2015, we request that you formally provide us with the final data of your company for the year 2019, including all relevant clarifications, and that these be certified by a licensed auditor from the Jordanian Association of Certified Public Accountants, by no later than the end of March 2020. In preparing these, you must observe International Financial Reporting Standards. In this context, we emphasize the necessity of the following:

1. Providing us with those financial statements via a formal cover letter in accordance with regulations, and ensuring that the financial statements are signed by both the person authorized to sign for administrative matters and the person authorized to sign for financial matters in the company, stating the name of the authorized person.

2. Ensuring that the auditor's certification of the final statements is in accordance with regulations, by stating the name of the responsible auditor, their license number, and their signature, and that their signature is certified by the Jordanian Association of Certified Public Accountants in accordance with its requirements.

3. Ensuring that the final statements include detailed clarifications - at a minimum - regarding the following: a. Creditors' and debtors' accounts listed in the statement of financial position and the date these accounts originated, with a statement indicating whether they were settled after the date of the financial statements and the date of such settlement. b. Transactions with related parties to the company. c. The volume of cases filed against the company and the volume of provisions set aside against them. d. Any amounts reserved or restricted for withdrawal. e. Any cases of theft, embezzlement, hacking, or insecure access to electronic payment systems used and/or owned by the company, stating the loss incurred by the company as a result thereof and any negative repercussions on the company's financial status, as well as the nature of measures taken to address them. f. The company's operational results in both the headquarters and branches separately, in addition to the volume of current assets, fixed assets, and total assets held by each as of 31/12/2019.

4. Ensuring that the attachments to the final statements include the following: a. A statement of the total volume of the company's transactions in issuing and receiving money transfers, whether in Jordanian Dinar or foreign currencies, during the year 2019, distributed by month, with a statement of the total revenue derived therefrom. b. A statement of the names of the top (5) markets (countries) the company deals with in issuing and receiving money transfers, stating the volume of such transactions and the revenue derived therefrom, and the average commission rate collected during the year 2019, according to the attached forms. c. A statement of balances in Jordanian Dinar and foreign currencies as of 31/12/2019.

d. A statement of total sales and purchases against the Jordanian Dinar, distributed by month, ensuring that their totals match the amounts stated in the company's final statements.

e. A statement detailing the cases filed against the company and the clear and explicit opinion of the company's lawyer regarding the company's position in each case separately, and the extent of the need to set aside any provisions against them.

5. Listing any outstanding unpaid amounts, including unpaid transfer amounts, under a separate line item in the "Other Liabilities" account within the statement of financial position, in accordance with International Financial Reporting Standards, with an attached detailed statement of those amounts including the date these amounts were recorded in the company's records and whether they were settled after the date of the final financial statements. We emphasize what was stated in our circular No. (12785/7/2/9) dated 20/10/2013 regarding this matter.

If the review of the company's final statements and/or their attachments reveals the need for you to make any modifications to them, the company must commit to making those modifications and reflecting them in the financial statements where necessary, and providing the Central Bank with the modified, properly approved, and auditor-certified statements as soon as possible to allow for the appropriate decision to be taken regarding them.

We also point out, on this occasion, the necessity of providing us with a copy of the contract concluded between the company and the auditor, emphasizing the necessity of observing the provisions of Article (14) of our instructions No. (2018/70) and its amendments dated 5/7/2018, which require the company to include in the contract concluded with the auditor what is necessary to ensure that the company applies the provisions of the Anti-Money Laundering and Terrorist Financing Law, the Exchange Business Law in force, and all instructions and decisions issued pursuant thereto, and to evaluate the adequacy of the company's policies and procedures related to combating money laundering and terrorist financing, and to include that in the results of his report.

We emphasize the importance of strict compliance with the above, and otherwise, your company will be subject to the application of penalties stipulated in Article (26) of the Exchange Business Law No. (44) of 2015.

Please accept our highest respect,

The Governor Dr. Ziad Friez

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Attachments:

1. A statement of foreign currency and precious metal exchange rates for the purpose of evaluating your asset balances and foreign currency liability balances. As for other currencies, they are evaluated according to the average price as of the end of the last working day of December 2019.
2. Form for a statement of the names of the top (5) markets (countries) the company deals with in issuing money transfers, the volume of such transactions and the revenue derived therefrom, and the average commission rate collected during the year 2019.
3. Form for a statement of the names of the top (5) markets (countries) the company deals with in receiving money transfers, the volume of such transactions and the revenue derived therefrom, and the average commission rate collected during the year 2019.

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Central Bank of Jordan Daily Foreign Currency Exchange Rates Bulletin for Evaluation Purposes Number: 17874/215/8/5 Date: 5 Jumuada al-Awwal 1441 AH Corresponding to: 31 December 2019 AD Time: 08:12

We list below the foreign currency exchange rates for evaluation purposes for Tuesday, 31-12-2019, in fils:

Currency	Average Price
US Dollar	709.000
Euro	794.860
British Pound	929.955
Swiss Franc	732.630
Japanese Yen / per hundred	652.220
Swedish Krona	75.840
Lebanese Lira / per thousand	468.855
Saudi Riyal	189.000
Bahraini Dinar	1880.440
Kuwaiti Dinar	2338.775
Canadian Dollar	543.380
Pakistani Rupee / per ten	45.775
Indian Rupee / per ten	99.485
Australian Dollar	496.900
New Zealand Dollar	477.225
Norwegian Krone	80.430
Chinese Yuan / per ten	1016.010
Danish Krone	106.345

Central Bank of Jordan

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

We list below the average price for an ounce of gold, an ounce of silver, and an ounce of platinum, weighing (31.1035) grams and with a purity of (995) per thousand or more, as of the end of the last working day of December 2019, for evaluation purposes in Jordanian Dinar:

Metal	Average Price
Ounce of Gold	1080.100
Ounce of Silver	12.657
Ounce of Platinum	685.305

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Company Name ....................................................

Statement of the names of the top (5) markets (countries) the company dealt with in receiving money transfers during the year 2019, the volume of such transactions and the revenue derived therefrom, and the average commission rate collected:

In Jordanian Dinar

Market / Country	Total Volume of Transactions in Receiving Money Transfers	Revenue Derived	Average Commission Rate Collected (Market)
Total

Auditor Name and Signature: ........................... Name of Authorized Person for Financial Matters and Signature: ...........................

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Company Name ....................................................

Statement of the names of the top (5) markets (countries) the company dealt with in issuing money transfers during the year 2019, the volume of such transactions and the revenue derived therefrom, and the average commission rate collected:

In Jordanian Dinar

Market / Country	Total Volume of Transactions in Issuing Money Transfers	Revenue Derived	Average Commission Rate Collected (Market)
Total

Auditor Name and Signature: ........................... Name of Authorized Person for Financial Matters and Signature: ...........................