Central Bank of Jordan Circular on Foreign Currency Transactions and Reporting Obligations

Central Bank of Jordan Circular No. 2021/1 Subject: Reporting of Foreign Currency Transactions and Compliance with Anti-Money Laundering and Counter-Terrorist Financing Regulations

Date: 15/05/2021

Reference: CBJ/AML/CIR/2021/01

To: All Licensed Financial Institutions and Designated Non-Financial Businesses and Professions (DNFBPs)

1. Introduction

Pursuant to the powers vested in the Central Bank of Jordan (the "Bank") under the Anti-Money Laundering and Counter-Terrorist Financing Law No. (24) of 2017, and its implementing regulations, and in accordance with the Bank's supervisory authority, this circular outlines the obligations regarding the reporting of foreign currency transactions and the implementation of internal controls.

2. Scope of Application

This circular applies to: (a) All banks and financial institutions licensed by the Bank. (b) All designated non-financial businesses and professions (DNFBPs) as defined by the relevant laws, including real estate agents, lawyers, notaries, and dealers in precious metals and stones, where applicable.

3. Reporting Obligations

3.1. Reportable Transactions All covered entities must report to the Financial Intelligence Center (FIC) any transaction conducted in cash or other forms, involving foreign currency, where the amount equals or exceeds 10,000 Jordanian Dinar (JOD) or its equivalent in foreign currency.

3.2. Suspicious Transaction Reports (STRs) Entities must also file a Suspicious Transaction Report if they suspect or have reasonable grounds to suspect that the funds involved are proceeds of criminal activity or related to terrorist financing, regardless of the transaction amount.

3.3. Timing of Reports Reports must be submitted to the FIC within 15 working days from the date the transaction was conducted or the suspicion arose.

4. Internal Controls and Due Diligence

4.1. Customer Due Diligence (CDD) Entities must perform Customer Due Diligence measures, including: (a) Identifying the customer and verifying their identity using reliable, independent source documents, data, or information. (b) Identifying the beneficial owner, if any, and taking reasonable measures to verify their identity. (c) Understanding the nature and purpose of the business relationship.

4.2. Enhanced Due Diligence (EDD) Enhanced due diligence measures must be applied to: (a) High-risk customers, including politically exposed persons (PEPs). (b) Complex or unusually large transactions. (c) Transactions with no apparent economic or lawful purpose.

4.3. Record Keeping Entities must maintain records of all transactions and due diligence information for a period of at least five years from the date of the transaction or the end of the business relationship.

5. Prohibition of Structuring

It is strictly prohibited to structure transactions, i.e., breaking down a single transaction into multiple smaller transactions, with the intent of avoiding the reporting threshold of 10,000 JOD. Any such activity will be considered a violation of this circular and may result in administrative penalties.

6. Supervision and Penalties

6.1. Supervision The Bank reserves the right to conduct inspections and audits to ensure compliance with this circular and relevant regulations.

6.2. Penalties Failure to comply with the provisions of this circular may result in administrative fines, suspension of licenses, or other regulatory actions as prescribed by the Anti-Money Laundering and Counter-Terrorist Financing Law.

7. Effective Date

This circular is effective as of the date of issuance.

Issued by: Central Bank of Jordan Financial Stability and Supervision Department

Contact Information: Email: info@cbj.gov.jo Website: www.cbj.gov.jo

Annex A: List of Reportable Entities Annex B: Template for Suspicious Transaction Report

End of Document