Circular Regarding Monthly Statistical Reports Forms No. (9-3-7-1685)

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

No.: 7/3/9/ 1685
Date: 19/6/1436 AH
Corresponding to: 9/6/2015 AD

Circular to Licensed Exchange Companies
Subject: Monthly Statistical Reports Forms

Greetings,

Subsequent to our circular No. (9/3/7/10572) dated 31/8/2014 regarding the monthly statistical reports forms that require you to fill them out properly and provide them to us periodically in accordance with Article (22/A) of the Exchange Business Law No. (26) of 1992, and following the conclusions of the explanatory workshop held at the Central Bank of Jordan building on 4/2/2015 on this matter, and what representatives of several exchange companies clarified regarding the continued existence of problems in their application and their expressed need for more time to modify and automate systems to meet the requirements related to data for the remittance disclosure form, and taking into consideration the comments received from them indicating the impossibility of filling out some items in the disclosure at the current stage and their request to reflect that on the approved remittance form, and with the Central Bank's keenness on the accuracy of data provided by exchange companies and to contribute to achieving the desired objectives of these forms, we attach herewith the modified remittance disclosure form to be filled out and the rest of the monthly statistical reports according to regulations, effective from January 2015 data, and to be provided to us in parallel with the previous remittance form until June 2015 data, during which period the necessary measures will be taken to ensure your company's readiness in this regard, ensuring absolute accuracy in filling out and classifying the required data, which will reflect on the integrity and reliability of the data and overall indicators of the banking sector.

We also attach herewith the guide for filling out this form to clarify the concepts contained therein, while emphasizing that we will continue to receive any comments you may have on this matter through the Jordanian Exchange Association for a period of two weeks from its date.

Please accept our highest respect,

Governor
Dr. Ziad Fries

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Guide for Filling Out the Outward and Inward Remittances Form

Introduction:
Given the importance of the exchange sector and the high volume of transfers conducted through it, it was necessary to find a means to obtain more accurate and detailed data consistent with the latest international methodologies and practices.

Concepts and Terms:
Residency: A person is considered a resident in Jordan if they have resided for one year or more or intend to reside for more than a year regardless of nationality and have an economic interest. There are exceptions for students, patients, and diplomats, who are always considered residents of their home country.

Examples:

• A Gulf student studying at a university in Jordan is considered a non-resident in Jordan regardless of the duration of their stay.
• A Jordanian student studying at a university in America is considered a resident in Jordan regardless of the duration of their stay.
• A Yemeni patient who came to Jordan for treatment is considered a non-resident in Jordan regardless of the duration of their stay in Jordan.
• An Egyptian working in Jordan who has resided for more than a year is considered a resident in Jordan.
• A domestic worker from Bangladesh working in Jordan is considered a resident in Jordan.
• A Jordanian working in the Gulf is considered a non-resident in Jordan.
  Therefore, the place of permanent residence is considered a primary criterion for judging the status of the counterparty.

Workers' Remittances: Financial transfers by workers abroad to their relatives for current expenditure purposes, not for investment or savings, and are usually within the same family. These remittances are generally repetitive and of relatively small amounts.

Examples:

• A Jordanian working in the UAE (non-resident in Jordan) who transfers money to his relatives in Jordan (classified in the Inward Remittances form).
• An Egyptian working in Jordan (resident in Jordan) who transfers money to his relatives in Egypt (classified in the Outward Remittances form).

Personal Transfers: Characterized by relatively small amounts, these transfers are sent to help individuals who have no relation to the sender (not within the same family).

Examples:

• A Jordanian residing in Jordan sending aid to a family in Palestine (classified in the Outward Remittances form).
• A Jordanian residing outside Jordan or a non-Jordanian of another nationality sending aid to a Syrian family residing in Jordan (classified in the Inward Remittances form).
• Humanitarian aid and donations to external entities.

Pensions: Pensions transferred to retired workers or in other circumstances such as illness and unemployment.

Investment Transfers: Include financial transfers sent for the purpose of purchasing real estate, shares, bonds, funding the sender's own account (savings deposits)... etc. These transfers are characterized by relatively large amounts.

• A Jordanian residing abroad who sent a transfer to fund his account in his bank in Jordan is recorded under Investment Transfers, but if funding another person's account, the purpose of the transfer must be known.

Medical and Study Transfers: Financial transfers sent or received for medical and study purposes.

Trade: Financial transfers received in exchange for commercial goods or other commercial services to settle the prices of these goods and services.

Transit Remittances: These are remittances where the Jordanian exchange company acts as an intermediary for the remittance, where the original sender and the final beneficiary are outside Jordan.

• A remittance received via the UAE to a Jordanian exchange company to be transferred to the final beneficiary in Lebanon must be recorded upon arrival in Jordan under the Inward Remittance form under the transit item, and recorded again when sending it to the final beneficiary outside Jordan (Lebanon) in the Outward Remittance form under the transit item.

Others: Any remittance that does not fall under any of the mentioned purposes is classified under the "Others" item in the form, and it is best to mention the purpose, especially in the case of large amounts.

Remittances Between Exchangers: These are remittances conducted between local exchange companies or their branches, which may be for clearing or settling accounts (classified under the supplementary item in the form).

How to Fill Out the Form:
The most important information for the form that must be within the system at exchange companies:
First: Knowing the receiving and sending countries of the remittance.
Second: The country of permanent residence of the sender or receiver of the remittance.
Third: Knowing the purpose of the remittance (according to the classifications shown in the form).

Outward Remittances: These are remittances sent from Jordan to another country, and are recorded in the Outward Remittances form. It is necessary to know the country of residence of the person originating the remittance, the receiving country of the remittance, and the purpose of the remittance. Examples: Outward Remittances (note how they are recorded in the Outward Remittances form) Example (1): An Egyptian worker in Jordan wants to transfer an amount (2000 JD) to his relatives in Egypt.

• Receiving country of the remittance: Egypt.
• Country of residence of the remittance source: Resident in Jordan.
• Purpose of the remittance: Workers' remittances.
• Amount: 2000 JD.

Example (2): An Iraqi with an economic interest in Jordan wants to transfer an amount (2000 JD) to his relatives in Lebanon.

• Receiving country of the remittance: Lebanon.
• Country of residence of the remittance source: Resident in Jordan.
• Purpose of the remittance: Workers' remittances.
• Amount: 2000 JD.

Note: The country of residence of the remittance source is mostly in Jordan (resident), but there are some cases where they are non-resident, as shown in the following examples:
Example (3): A Saudi who came to Jordan and resided there for less than a year (non-resident in Jordan) wants to transfer an amount (500 JD) to his brother in Saudi Arabia for study.

• Receiving country of the remittance: Saudi Arabia.
• Country of residence of the remittance source: Non-resident in Jordan.
• Purpose of the remittance: Study.
• Amount: 500 JD.

Example (4): A Jordanian working in Qatar who came to Jordan on vacation (non-resident in Jordan) wants to transfer an amount (300 JD) for his son's treatment in Qatar.

• Receiving country of the remittance: Qatar.
• Country of residence of the remittance source: Non-resident in Jordan.
• Purpose of the remittance: Treatment.
• Amount: 300 JD.

Example (5): A Libyan who came to Jordan for treatment and resided in Jordan for two years wants to transfer an amount of 100 JD to his friend in Libya (Note: The patient is considered a resident of his home country (Libya) regardless of the duration of his stay in Jordan).

• Receiving country of the remittance: Libya.
• Country of residence of the remittance source: Non-resident in Jordan.
• Purpose of the remittance: Personal transfers.
• Amount: 1000 JD.

Inward Remittances: These are remittances arriving in Jordan, and are recorded in the Inward Remittances form. It is necessary to know the country of residence of the person receiving the remittance and the sending country of the remittance. Examples: Inward Remittances (note how they are recorded in the Inward Remittances form) Example (1): A Jordanian working in the UAE wants to transfer an amount of 60,000 JD to an intermediary for the purpose of purchasing real estate in Jordan.

• Sending country of the remittance: UAE.
• Country of residence of the remittance recipient: Resident in Jordan.
• Purpose of the remittance: Investment transfers, purchasing real estate.
• Amount: 60,000 JD.

Example (2): A charity received aid from Saudi Arabia worth 500 JD.

• Sending country of the remittance: Saudi Arabia.
• Country of residence of the remittance recipient: Resident in Jordan.
• Purpose of the remittance: Personal transfers.
• Amount: 500 JD.

Note: The remittance recipient will mostly be in Jordan (resident), but there are some cases where they are non-resident, as shown in the following example:
Example (3): A Kuwaiti student in Jordan received a remittance from his family in Kuwait for an amount of 1000 JD (non-resident in Jordan) to pay his university fees.

• Sending country of the remittance: Kuwait.
• Country of residence of the remittance recipient: Non-resident in Jordan.
• Purpose of the remittance: Study.
• Amount: 1000 JD.

Data for outward and inward remittances to the Kingdom are entered into the system individually and then queried in aggregate, and provided to the Central Bank on a monthly and periodic basis as per the attached form (in aggregate by purpose and geographical distribution).