Central Bank of Jordan Circular on Requirements for Money Transfer Agency Applications

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

[Logo of the Central Bank of Jordan]

Number: 3/9/3900
Date: 6/2/2018 AH
Corresponding to: 18/2/2018 AD

Circular to Licensed Money Exchange Companies

The Central Bank is keen on regulating the processing of various applications submitted for dealing in money transfers by money exchange companies authorized to deal in money transfers in accordance with the license granted to them by the Board of Directors of the Central Bank of Jordan. Following our Circular No. (2914/7/3/9) dated 13/3/2012, which included the necessary requirements for reviewing money exchange companies' applications for approval to deal in money transfers with external money exchange companies, we list below the additional requirements that must be attached to the applications submitted by you for the purpose of dealing in money transfers, detailed according to the type of application submitted as follows:

A. Applications to deal as principal agents for rapid money transfer companies:

1. A statement confirming no objection to your company working with the desired company as a principal agent for its rapid money transfer service, and if you wish to grant sub-agencies to other money exchange companies to deal in the above service through your company, it must explicitly state your ability to do so.
2. A comprehensive and detailed technical study of the arising risks, including an analysis of all types of risks (such as: reputation risk, concentration risk, operational risk, etc.) and the corresponding controls intended to be provided to control and manage these risks, clearly demonstrating the responsibilities and mechanisms intended to be used to identify, assess, monitor, and control the risks resulting from your dealing as a principal agent for the company requested to be dealt with in the rapid money transfer service.
3. The policies and procedures followed by the company to manage the risks of the company's electronic dealing with money transfer service providers at the company's center and any branches it may have.
4. The financial position of your company as of the date of submitting the application, in case the application submitted by you includes your wish to deal as a principal agent for rapid money transfer companies with the possibility of granting sub-agencies.

B. Applications to deal as sub-agents for rapid money transfer companies through their licensed principal agents:

1. Specify the name of the principal agent desired to be dealt with as a sub-agent through it in the rapid money transfer service.
2. A statement confirming no objection from the desired principal agent to your company working as a sub-agent for it in the required service.
3. Specify the reasons and justifications for the request to change the principal agent through which the company wishes to deal, in case the company already has previous approval to deal as a sub-agent in the same service through another principal agent, along with attaching a statement confirming the termination and settlement of any dealings with the previous principal agent in the required service.

P.O. Box 370, Amman 11118 - Jordan Phone 9/4630301 * Fax 4638899 4639730 Website www.cbj.gov.jo Email info@cbj.gov.jo

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

[Logo of the Central Bank of Jordan]

C. Applications to deal with money exchange companies and money transfer companies outside the Kingdom

1. Approval from the competent regulatory authorities in the country of the external entity intended to be dealt with, regarding the nature of the dealing, where required.
2. The dealing mechanism between the company intended to be dealt with and your company.
3. The ownership and management structure of the external entity that your company intends to deal with.
4. A statement regarding whether the company intended to be dealt with is from the same financial group, and a statement regarding whether any of the partners in your company or any of its managers who have an influential interest, directly or indirectly, with the company intended to be dealt with.*

We remind you that no application submitted for dealing in money transfers will be considered if it does not meet the above conditions and requirements, and we emphasize at the same time that the Central Bank may request any other requirements it deems necessary according to each case individually, noting that providing those requirements does not necessarily mean the Central Bank's approval of the submitted application.

Please accept our highest regards,

The Governor
[Signature]
Dr. Ziad Fries

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• The term "influential interest" refers to: Control over no less than (10%) of the capital of a legal entity.
  Also, the terms "control" and "financial group" refer to the definitions contained in the Anti-Money Laundering and Counter-Terrorism Financing Instructions for Money Exchange Companies No. (2018/70) dated 17/1/2018.

P.O. Box 370, Amman 11118 - Jordan Phone 9/4630301 * Fax 4638899 4639730 Website www.cbj.gov.jo Email info@cbj.gov.jo