Regulatory Alerts2023-04-06
Added · Updated
Central Bank of Jordan Instruction No. 4 of 2023 Regarding Fines for Insurance Activities
The Central Bank of Jordan issued Instruction No. 4 of 2023 to establish specific fine ranges in thousands of Jordanian Dinars for violations by licensed insurance companies and unlicensed persons conducting insurance activities. The instruction details 70 distinct violations for insurers, such as delayed claim payments, solvency breaches, and governance failures, with fines ranging from 1,000 to 125,000 JD, alongside 13 violations for unlicensed entities with penalties up to 200,000 JD. It mandates that the Central Bank consider aggravating and mitigating circumstances when determining fine amounts and requires that repeated violations within one year result in doubled fines, capped by the maximum limits set in the Insurance Activities Regulation Law No. 12 of 2021.