Central Bank of Jordan Circular on Inherent Risks and Self-Assessment for NGOs and NPOs

Central Bank of Jordan Circular No. 2021/1 Subject: Inherent Risks and Self-Assessment for NGOs and NPOs

Date: 2021

To: All Non-Governmental Organizations (NGOs) and Non-Profit Organizations (NPOs)

The Central Bank of Jordan, in accordance with its regulatory authority, issues this circular to outline the requirements for identifying inherent risks and conducting self-assessments for NGOs and NPOs.

1. Inherent Risks All NGOs and NPOs must identify and assess the inherent risks associated with their activities, including but not limited to money laundering and terrorist financing. This assessment should consider the nature of the organization, its beneficiaries, geographic locations, and types of transactions.

2. Self-Assessment NGOs and NPOs are required to perform a comprehensive self-assessment to evaluate their exposure to these risks. The self-assessment must be documented and updated regularly to reflect any changes in the organization's operations or risk profile.

3. Mitigation Measures Based on the identified risks and self-assessment results, NGOs and NPOs must implement appropriate mitigation measures. These measures should be proportionate to the level of risk identified and designed to prevent the misuse of the organization for illicit purposes.

4. Reporting NGOs and NPOs must report the results of their self-assessments and the mitigation measures implemented to the Central Bank of Jordan as requested. Failure to comply with these requirements may result in regulatory action.

For further information, please contact: Email: info@cbj.gov.jo Website: www.cbj.gov.jo Phone: +962-6-590-6000

Central Bank of Jordan 2021