Circular No. 14/3/9/11307: Appointment of Licensed Exchange Companies as Agents for Mobile Payment and Electronic Bill Presentation and Collection Services

Number: 14/3/9/11307
Date: 17 Dhu al-Qi'dah, 1437
Corresponding to: August 17, 2016

Circular to Licensed Exchange Companies

Subject: Appointment of Exchange Companies as Agents to Provide Mobile Payment Services and/or Electronic Bill Presentation and Collection System Services in the Kingdom

Greetings,

Based on the provisions of Article (16/e) of the Exchange Operations Law No. (44) of 2015, Article (29) of the Mobile Payment Instructions, and Article (25/n) of the Electronic Bill Presentation and Collection System Instructions in force, the Board of Directors of the Central Bank, by its decision No. (120/2016) dated July 31, 2016, has permitted licensed exchange companies qualified under the prevailing legislation to act as agents for the electronic payment service providers mentioned above, subject to the conditions mentioned below, and to be carried out as follows:

First: The exchange company wishing to work as an agent for the aforementioned electronic payment service providers must submit a formal application to obtain the prior approval of the Central Bank for this transaction. The application must include the following:

1. Identification of the service provider's name that the company intends to act as an agent for.
2. The settlement mechanism for accounts resulting from the company's transactions as an agent for payment and collection services.
3. The percentage caps specified for the volume of the company's transactions with payment and collection services.
4. The mechanism for distributing commissions between the service provider and the company.
5. Any financial guarantees and/or sureties that the company will provide specifically.

Second: Compliance with the following conditions:

1. The service provider that the exchange company wishes to act as an agent for must be formally licensed.
2. The exchange company must fully comply with all provisions of the prevailing legislation in the Kingdom related to the service, specifically the Exchange Operations Law No. (44) of 2015, the prevailing instructions combating money laundering and terrorist financing for exchange companies, and the prevailing legislation regarding the use of customer identification forms provided to the company by the aforementioned service provider.
3. Settlements for any existing accounts resulting from the exchange company's transactions as an agent in the aforementioned service must be made on a real-time basis.
4. The operations executed must be within the caps specified for this purpose.
5. Compliance with the mechanism provided to the Central Bank for distributing commissions between the service provider and the exchange company.
6. Clearly advertising the amount of commissions charged for the service to the company's customers.
7. Providing the Central Bank with the volume of operations and revenues derived from the aforementioned service within the company's monthly statistical reports.
8. Formally recording operations related to this service in the company's books and records, and showing the realized revenues in its final accounts under a separate item.
9. Establishing internal policies, procedures, and controls, formally approving them, and effectively implementing them on the ground to manage all risks arising for the company from this transaction.
10. Providing appropriate training to the exchange company's employees related to providing the payment service agent service and qualifying them - in cooperation with the service provider - so that they can serve customers and answer their inquiries with efficiency and effectiveness.
11. Taking measures to maintain the confidentiality and privacy of customer data, and restricting the circulation of such data to relevant parties only.
12. Taking all necessary technical and administrative arrangements to preserve the integrity and security of any transactions and protect them in accordance with the circulars and guidelines issued by the Central Bank specifically.
13. The agreements to be concluded with exchange companies specifically must remain valid until the issuance of the systems and instructions stipulated in the Exchange Operations Law No. (44) of 2015, and the agreement(s) must be consistent with the relevant prevailing Jordanian legislation.

Noting that the payment service provider is responsible for all actions of the agent/exchange company regarding the provision of the service; this is based on the provisions of Article (29) of the Mobile Payment Instructions and Article (25/n) of the Electronic Bill Presentation and Collection System Instructions.

Please accept our highest respect,

The Governor
Dr. Ziad Fariz

Copy: Analysis and Monitoring Department