Central Bank of Jordan Circular on Identifying Commercial Use of Personal Accounts

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

Central Bank of Jordan

Ref No: 7734/10/15
Date: 16/8/1440 AH
Corresponding to: 21/4/2019 AD

Circular to Banks Operating in the Kingdom

Greetings,

With reference to Item (Second) of Article (15) of the Anti-Money Laundering and Combating the Financing of Terrorism Instructions No. (14/2018) dated 26/6/2018, which prohibits banks from executing commercial financial transactions on the accounts of natural persons, and to Item (Third) of the aforementioned Article, which prohibits banks from dealing in transactions related to exchange and transfer operations through the accounts of persons not licensed to do so, and in light of the numerous inquiries received from banks regarding indicators of the exploitation of personal accounts for such purposes, we attach herewith an appendix containing the most important indicators through which it can be inferred that the customer(s) are exploiting personal accounts for commercial purposes and for exchange and transfer operations. These indicators must be included in the approved policies and procedures and in the automated systems in place at your banks as a minimum, and be taken as a tool for educating bank employees.

In this regard, we point out the necessity for the bank to continuously monitor customer account movements and compare them with what is declared in Know Your Customer (KYC) forms and with the nature of the customer's activity, in order to judge whether the concept of "conducting commercial activities" applies to the account(s) of the bank's customer or not. We also emphasize the necessity of consulting your legal advisors when studying the applicability of the definition of "trader/conducting commercial activities" under Commercial Law No. (12) of 1966 to the cases encountered by the bank.

Please accept our highest respect,

The Governor
Dr. Ziad Friez

Enclosed

Form (1/1/10-14)
P.O. Box 37 • Amman 11118 Jordan • Tel: 4630301 • Fax: 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo