Regulatory Alerts2023-07-17
Added · Updated
Circular on Prize-Linked Savings Accounts
The Central Bank of Jordan extends the validity of prize-linked savings deposit accounts until the end of 2025 under existing controls. Banks must grant prizes exclusively in Jordanian Dinars and obtain prior Central Bank approval before advertising or promoting any linked prizes. The directive requires quarterly reporting on prize distribution and customer receipt, inclusion of prize procedures in annual internal audits, and prior customer consent for publishing winner names. Expired product advertisements may remain on social media only if clearly marked as expired and removed from other media.
In the name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Reference No.: 14278/3/27 Date: 29/9/1444 AH Corresponding to: 11/4/2023 AD
Circular to Banks Operating in the Kingdom
Greetings,
With reference to our Circular No. (3808/5/27) dated 2019/3/10 regarding "Prize-Linked Savings Accounts," it has been decided to continue extending the validity period for granting prizes linked to savings deposit accounts until the end of 2025, under the same conditions and controls stipulated in the aforementioned circular, with the necessity to adhere to the following:
- Prizes for savings deposit accounts must be granted in Jordanian Dinar only.
- Thoroughly study prize programs and associated advertisements before contacting us to avoid repeated modifications, and provide us with all details of the prize programs and their associated advertisements together.
- Obtain prior customer consent if the bank wishes to advertise the names of winners of prizes linked to any customer accounts.
- Provide the Central Bank of Jordan with quarterly statements regarding the prizes provided, the number and names of customers benefiting from those prizes, and indicate whether the prizes have been received by the customers or not, along with the measures taken by the bank regarding them.
- Include in the bank's annual internal audit plan a review of the procedures for granting prizes and the lottery process for savings deposit accounts in accordance with prevailing legislation and the bank's policies and procedures.
Noting the possibility of keeping advertisements for expired prize and credit products on the bank's social media pages/sites only, provided that the advertisements clearly and directly indicate that the associated campaign has expired, and that such advertisements be removed from other advertising media.
Emphasizing the necessity for all banks to obtain prior approval from the Central Bank before advertising and/or promoting any of their prizes linked to any customer accounts.
The provisions of this circular shall apply from its date.
Please accept our highest regards,
[Signature] Governor Dr. Adel Al-Sharkas