Regulatory Alerts2022-08-31
Added · Updated
Central Bank of Jordan Circular on Mechanism for Recording and Classifying Outward and Inward Remittances
The Central Bank of Jordan mandates licensed exchange companies to adhere to specific guidelines for recording and classifying outward and inward remittances within the designated statistical form. These rules distinguish between traditional, electronic, and inter-company transfers, assigning recording responsibilities to the issuing or receiving entities based on the transaction type. Licensed exchange companies must submit this data periodically by the 10th of each month, with non-compliance subject to legal measures under Article 26 of the Exchange Operations Law.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
No: 9/ 13496 Date: 27 / 1 / 1444 AH Corresponding to: 25 / 8 / 2022 AD
Circular to Licensed Exchange Companies Subject: Mechanism for Recording and Classifying Outward and Inward Remittances
Greetings,
Based on the provisions of Article (22/A) of the Exchange Operations Law No. (44) of 2015, and following our previous circulars regarding the periodic statistical statement forms provided by licensed exchange companies to the Central Bank of Jordan, and with the Central Bank of Jordan's keenness on the accuracy and reliability of the data filled by exchange companies on one hand, and aiming to organize and unify the mechanism for filling data related to outward and inward remittances within the "Outward and Inward Remittance Movement (including those executed via SWIFT) according to Geographic Distribution and Purpose of Remittance" form on the other hand, and covering the different transfer methods used in the banking sector, we attach herewith guidelines regarding the mechanism for recording and classifying outward and inward remittances within the aforementioned form.
We point out the necessity of adhering to these guidelines and exercising utmost precision when filling and classifying such data and providing it to us periodically by no later than the 10th of the end of each month, according to our previous circulars on the matter, under the threat of taking legal measures stipulated in Article (26) of the aforementioned Law.
Please accept our highest respect,
Central Bank of Jordan
P.O. Box 37 Amman 11118 - Jordan Phone 4630301 / 9 * Fax 4638889, 4639730 Website www.cbj.gov.jo Email info@cbj.gov.jo
Mechanism for Recording and Classifying Outward and Inward Remittances within the "Outward and Inward Remittance Movement including those executed via SWIFT according to Geographic Distribution and Purpose of Remittance" Form
First: Outward Remittances
| # | Item | Nature of Financial Cases | Handling Mechanism | Entity Required to Record | Recording Location in the Form |
|---|---|---|---|---|---|
| 1 | Outward remittances from a licensed exchange company to an external party | Ordinary / Non-electronic remittances | Traditional means [Fax / Email / etc.] | The exchange company that undertook the issuance of the remittance abroad must record it as an external remittance | Main items within the form according to geographic distribution and purpose of transfer |
| 2 | Outward remittances from a licensed exchange company to an external party through another licensed exchange company | Ordinary / Non-electronic remittances | Traditional means [Fax / Email / etc.] | The exchange company that undertook the issuance of the remittance abroad must record it as an external remittance, while the first exchange company/remittance creator must record it as a local outgoing remittance under the supplementary item (Between Exchangers) | Licensed Exchange Company Issuing the Remittance: Main items within the form according to geographic distribution and purpose of transfer <br> Licensed Exchange Company Creating the Remittance: Supplementary item within the form / Local outgoing remittances |
| # | Item | Nature of Financial Cases | Handling Mechanism | Entity Required to Record | Recording Location in the Form |
|---|---|---|---|---|---|
| 3 | *Outward remittances from a licensed exchange company to an external party through an approved electronic payment and transfer system [applicable to the definition of Global Electronic Payment and Transfer System] | Electronic remittances | Global electronic payment and transfer system, where both the exchange company issuing the remittance and the external party act as participants on that system. | The exchange company that undertook the issuance of the remittance abroad must record it as an outgoing remittance, whether the licensed exchange company is a principal agent or a branch agent. | Licensed Exchange Company Issuing the Remittance (Remittance Creator): Main items within the form according to geographic distribution and purpose of transfer |
| 4 | *Outward remittances from a licensed exchange company to an external party through a licensed electronic payment and transfer system | Electronic remittances | Licensed electronic payment and transfer system, where both the exchange company issuing the remittance and the external party act as participants on that system. | The exchange company (participant on the system) that undertook the issuance of the remittance abroad must record it as an outgoing remittance. Meanwhile, the director of the licensed electronic payment and transfer system is obliged to record transactions executed through his system according to the approved statistical statements as a basis for the implemented Electronic Payment and Transfer System for Funds. | Licensed Exchange Company Issuing the Remittance: Main items within the form according to geographic distribution and purpose of transfer |
- When licensed exchange companies act as managers and operators of electronic payment and transfer systems for funds by creating or receiving a remittance through the licensed system managed by them as a participant, they must record those remittances according to the mechanism outlined above, just like any other licensed exchange company participating on the system.
Second: Inward Remittances
| # | Item | Nature of Financial Cases | Handling Mechanism | Entity Required to Record | Recording Location in the Form |
|---|---|---|---|---|---|
| 1 | Inward remittances from an external party to a licensed exchange company | Ordinary / Non-electronic remittances | Traditional means [Fax / Email / etc.] | The exchange company that received the payment order for the remittance from abroad must record it as an inward remittance | Main items within the form according to geographic distribution and purpose of transfer |
| 2 | Inward remittances from an external party to a licensed exchange company to be received through another licensed exchange company | Ordinary / Non-electronic remittances | Traditional means [Fax / Email / etc.] | The exchange company that received the payment order for the remittance from abroad (the first recipient of the remittance) must record it as an inward remittance, while other exchange companies must record it as a local inward remittance under the supplementary item (Between Exchangers) | Licensed Exchange Company Receiving the Remittance: Main items within the form according to geographic distribution and purpose of transfer <br> Other Licensed Exchange Company that Paid the Remittance: Supplementary item within the form / Local inward remittances |
| # | Item | Nature of Financial Cases | Handling Mechanism | Entity Required to Record | Recording Location in the Form |
|---|---|---|---|---|---|
| 3 | *Inward remittances from an external party to a licensed exchange company through an approved electronic payment and transfer system [applicable to the definition of Global Electronic Payment and Transfer System] | Electronic remittances | Approved electronic payment and transfer system, where both the licensed exchange company receiving the remittance and the external party act as participants on that system. | The exchange company that received the payment order for the remittance from abroad must record it as an inward remittance, whether the licensed exchange company is a principal agent or a branch agent. | Licensed Exchange Company Receiving the Remittance: Main items within the form according to geographic distribution and purpose of transfer |
| 4 | *Inward remittances from an external party to a licensed exchange company through a licensed electronic payment and transfer system | Electronic remittances | Licensed electronic payment and transfer system, where both the licensed exchange company receiving the remittance and the external party act as participants on that system. | The exchange company (participant on the system) that received the payment order for the remittance from abroad must record it as an inward remittance. Meanwhile, the director of the licensed electronic payment and transfer system is obliged to record transactions executed through his system according to the approved statistical statements as a basis for the implemented Electronic Payment and Transfer System for Funds. | Licensed Exchange Company Receiving the Remittance: Main items within the form according to geographic distribution and purpose of transfer |
- When licensed exchange companies act as managers and operators of electronic payment and transfer systems for funds by creating or receiving a remittance through the licensed system managed by them as a participant, they must record those remittances according to the mechanism outlined above, just like any other licensed exchange company participating on the system.