Regulatory Alerts2022-10-17
Added · Updated
Circular Regarding Enforcement Seizures Under Insurance Regulation Law No. 12 of 2021
The Central Bank of Jordan prohibits banks from imposing enforcement seizures or executions in favor of any entity other than the insured, except as permitted under Article 13 of Insurance Regulation Law No. 12 of 2021. Banks are required to verify the status of any applicant seeking such seizure and must notify both the Central Bank and the relevant insurance company if a seizure is executed or if the relevant amount is reduced.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Number: 17/2/14431 Date: 15/2/1444 Corresponding to: 11/9/2022
Circular to all banks operating in the Kingdom
With reference to the provisions of Article (13) of the Law Regulating Insurance Activities No. (12) for the year 2021, and in this regard, we confirm the following:
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It is not permissible to impose an enforcement seizure or execution in favor of any entity whatsoever, or to use it for any purpose contrary to what is stipulated in Item (1) of Paragraph (b) of Article (13), unless the seizure or execution is in favor of the insured, and you must verify the status of the applicant for the seizure or execution.
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Notify the Central Bank and the concerned insurance company in the event of any seizure against them or any reduction in the amount mentioned above.
And accept highest regards,,,
Governor Dr. Adel Al-Sharkas [Signature]