Circular on Reporting Fraud, Forgery, and Money Laundering Cases to Authorities

10/1/1546
22 / 6 /1443 AH
25 / 1/2022 CE
Circular to all licensed banks

Greetings,

Further to our circulars No. (10/2/4/9652) dated 14/9/2008, No. (10/4/2728) dated 18/2/2019, and No. (10/4/12018) dated 27/8/2019, concerning the requirement for banks to notify competent security authorities about any cases of (embezzlement, forgery, theft, fraud, or other similar cases) discovered, even if settled or resulting in no financial loss to the bank, and to inform the Central Bank of Jordan thereof; and in light of consultations with banks through the Banks Association regarding this matter, and the receipt of several letters from banks operating in the Kingdom informing us of the issues and difficulties they face during the reporting process and the subsequent procedures, please be informed of the following:

1. It is necessary for banks to notify competent security authorities and the Central Bank of Jordan of all cases mentioned above immediately upon their occurrence or discovery, where the bank or any of its managers is a party. Notification to the Central Bank must be independent of the notification to security authorities. The date of occurrence of these cases must be clarified in the letters submitted to the Central Bank, with subsequent provision to the Central Bank of documentation confirming notification to competent security authorities and clarifying the date of such notification.

2. We emphasize in this regard that the responsibility for notifying the Central Bank and security agencies of cases of forgery of letters and documents submitted to banks or issued by them lies with the bank that discovered the forgery and conducted the investigation (i.e., obtained the original forged documents and records).

3. It is necessary to inform the Central Bank of Jordan of all cases where the bank or any of its managers is not a party, and where it is the bank's responsibility to take necessary legal measures, including deciding whether to notify competent security authorities, based on the opinion of its legal advisor regarding each case and in accordance with relevant legislation.

4. Emphasizing the necessity of continuing to notify the Anti-Money Laundering and Counter-Terrorism Financing Unit in accordance with the requirements of the Anti-Money Laundering and Counter-Terrorism Financing Law No. (20) of 2021.

5. The application of our circular No. (10/2/4/9652) dated 14/9/2008, our circular No. (10/4/2728) dated 18/2/2019, and our circular No. (10/4/12018) dated 27/8/2019 is hereby repealed.

Please accept our highest respect,

The Governor
Dr. Adel Al-Sharkas