Regulatory Alerts2023-04-02
Added · Updated
Circular to Licensed Exchange Companies Regarding Compliance with Licensed Activity Categories
The Central Bank of Jordan mandates that licensed exchange companies strictly limit their operations to the specific activities permitted under their licensed category, as defined by the Exchange Companies Licensing System No. (39) of 2021. The regulator specifically prohibits Category (C) companies from issuing and receiving money transfers, restricting them exclusively to providing electronic money transfer services as sub-agents through approved electronic payment systems. This directive enforces the expiration of previous deadlines for ceasing unauthorized transactions and warns that non-compliance will result in legal measures. Additionally, market participants are required to verify that any dealings with licensed exchange companies align with the recipient's licensed operational category.
Central Bank of Jordan
Reference No.: 6310/9/4 Date: 11/9/1444 AH Corresponding Date: 2/4/2023 AD
Circular to Licensed Exchange Companies
Greetings,
With reference to the provisions of Article (5/A) of the Exchange Companies Licensing System No. (39) of 2021 and its amendments, and following our Circular No. (10063/14/3/9) dated 2021/7/7, which requested the adoption of necessary measures, arrangements, and the approval of an organized exit plan to stop any transactions falling outside the purpose for which each company is licensed to operate according to its category, considering such approvals void ipso facto, it was observed that some licensed exchange companies are engaging in activities that fall outside the purpose for which they are licensed according to their category, contrary to the provisions of the aforementioned Article. It became apparent in this context that some licensed exchange companies within Category (C) are engaging in the activity of issuing and receiving money transfers through various mechanisms and means, thereby exceeding the purposes for which they are licensed according to their category and authorized under the provisions of the aforementioned Article, which is "providing electronic money transfer services as a sub-agent through an approved electronic payment system." Therefore, I emphasize - in light of the expiration of the deadline set for stopping any transactions falling outside the purpose for which each company is licensed to operate according to its category and the settlement of necessary adjustments (if any) specified in your notification letter regarding the decision of the Board of Directors of the Central Bank of Jordan approving your company's license according to the category you applied to work within - the necessity to strictly comply with conducting only the business activities permitted for each company according to its category exclusively, in accordance with the provisions of the Exchange Companies Licensing System No. (39) of 2021 and its amendments, under the threat of taking legal measures in case of non-compliance.
I also emphasize the necessity for you to ensure, before dealing with any licensed exchange company, that such dealings are consistent with the purposes for which that company is licensed to operate according to the category in which it is licensed.
Please accept the highest assurances of respect,
Governor Dr. Adel Al-Sharkas (Signature)
*Please refer to the lists of approved electronic transfer systems published on the official website of the Central Bank of Jordan.
P.O. Box 37, Amman 11118 - Jordan Phone: 9/4630301 * Fax: 4638889, 4639730 Website: www.cbj.gov.jo Email: info@cbj.gov.jo