Regulatory Alerts2022-01-25
Added · Updated
Circular on Reporting Fraud, Forgery, and Theft to Competent Authorities and the Central Bank of Jordan
The Central Bank of Jordan mandates licensed banks to immediately report all cases of embezzlement, forgery, theft, and fraud to both security authorities and the Central Bank, requiring independent notifications and specific documentation of occurrence dates. Banks must also inform the Central Bank of incidents where they are not a party but are responsible for deciding on legal actions based on legal advisor opinions, while continuing to notify the Anti-Money Laundering and Terrorist Financing Unit. This directive repeals previous circulars numbered 9652/4/2/10, 2728/4/10, and 12018/4/10.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Number: 1047/1/10 Date: 23/6/1443 AH Corresponding to: 25/1/2022 AD
Circular to All Licensed Banks
Greetings,
Subsequent to our circulars No. (9652/4/2/10) dated 14/9/2008, No. (2728/4/10) dated 18/2/2019, and No. (12018/4/10) dated 27/8/2019, concerning the requirement for banks to report to competent authorities 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 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 which informed us of the issues and difficulties they face during the reporting process and subsequent procedures, please be informed of the following:
- It is necessary for banks to report to the competent security authorities and the Central Bank of Jordan all cases mentioned above immediately upon their occurrence or discovery, where the bank or any of its managers is a party. The notification to the Central Bank regarding the case must be independent of the process of notifying the security authorities. The date of occurrence of such cases must be clarified in the letters submitted to the Central Bank, with subsequent provision to the Central Bank of documentation confirming notification to the competent security authorities and clarifying the date of such notification.
We emphasize in this regard that the responsibility for informing the Central Bank and security authorities 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 (having obtained the original forged documents and papers).
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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 actions, including deciding whether to notify the competent security authorities or not, based on the opinion of its legal advisor regarding each case and in accordance with relevant legislation.
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Emphasizing the necessity to continue notifying the Anti-Money Laundering and Terrorist Financing Unit in accordance with the requirements of the Anti-Money Laundering and Terrorist Financing Law No. (20) of 2021.
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The application of our circular No. (9652/4/2/10) dated 14/9/2008, our circular No. (2728/4/10) dated 18/2/2019, and our circular No. (12018/4/10) dated 27/8/2019 is hereby repealed.
Please accept our highest regards,
The Governor Dr. Adel Al-Sharkas