Circular to Microfinance Companies: Mechanism for Obtaining Approval for Foreign Funding — CBJ — JO

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

[Logo of the Central Bank of Jordan]

Number: 15009 / 2 / 28
Date: 11 / 3 / 1440 AH
Corresponding to: 19 / 8 / 2018 AD

Circular to Microfinance Companies Operating in the Kingdom

Greetings,

We attach herewith a copy of the Prime Minister's Office letter No. (21/1/11/46554) dated 26 / 10 / 2015 regarding the "Mechanism for Obtaining Approval for Foreign Funding Provided to Associations, Civil Society Organizations, and Non-Profit Companies Operating in Jordan," for your information and action as appropriate.

Please accept our highest respect,

The Governor
Dr. Ziad Fries

Enclosed

Ministry of Planning and International Cooperation Number: 21 / 1 / 11 / 46554 Date: 26 / 10 / 2015

His Excellency the Minister of Interior
His Excellency the Minister of Planning and International Cooperation His Excellency the Minister of State for Prime Minister's Affairs His Excellency the Minister of Social Development His Excellency the Minister of Industry, Trade and Supply

I refer to your letter No. 5/2/19/9160 dated 1 / 10 / 2015.

The Council of Ministers reviewed your aforementioned letter and decided in its session held on 18 / 10 / 2015 - based on the recommendation of the Services, Infrastructure and Social Affairs Committee issued from its session held on 5 / 10 / 2015 - to adopt the mechanism for obtaining approval for foreign funding provided to associations, civil society organizations, and non-profit companies operating in Jordan, as attached to the aforementioned letter. It also emphasized that the Ministry of Planning and International Cooperation and the Coordination Committee for Humanitarian Aid Affairs are the reference authority for any requests related to external funding targeting Syrian refugees, the Jordanian Response Plan (JRP), and Iraqi guests, including in-kind and cash assistance.

Please accept our highest respect.

Prime Minister

Copy to: His Excellency the Secretary General of the Council of Ministers Decision No. (12079).
Copy to: Directorate of Ministerial Committees And 18 / 10

Humanitarian Aid Coordination Unit

Mechanism for Obtaining Approval for Foreign Funding Provided to Associations, Civil Society Organizations, and Non-Profit Companies Operating in Jordan

A comprehensive vision regarding foreign funding for associations and non-profit companies has been developed based on applicable laws and regulations. The proposed work mechanism aims to coordinate between civil society institutions, donors, and government entities, and to regulate and unify the reference authority for foreign funding for associations (excluding funding related to refugees and projects included in the Jordanian Response Plan, which remains under the Coordination Committee for Humanitarian Aid Affairs), as follows:

A. Associations Registered with the Associations Registry / Ministry of Social Development:

1) Associations wishing to obtain foreign funding or donations must submit an official request to the Associations Registry at the Ministry of Social Development based on the approved form. The Associations Registry will send a copy to the concerned ministry, the Ministry of Planning and International Cooperation, the Ministry of Interior, or any other concerned entity. If the request is submitted to the Prime Minister's Office, the Office will send the request to the Associations Registry within two working days, which will in turn request the association to fill out the approved form.
The form includes the following information:

Source of funding.
Identification of local partners - if any - to implement these projects in sectors and governorates.
Value of funding, account details, transfer details, and bank name.
Project name and objectives linked to national development goals, implementation location, and target groups.
Programs and activities planned for the project and the project budget.
Direct and long-term results of the project and performance measurement indicators.
Funding conditions.

2) Requests are sent by the Associations Registry within two working days to the concerned entities (the concerned ministry, the Ministry of Planning and International Cooperation, the Ministry of Interior, etc.). These entities/ministries will study the requests and send their opinion to the Ministry of Social Development / Associations Registry within 5 working days. The Ministry of Planning and International Cooperation will verify that the proposal and provided funding are part of bilateral cooperation agreements between the donor and Jordan, and whether the project falls under any international agreements, especially if it requires customs and/or tax exemptions.

3) The concerned ministry, the Ministry of Planning and International Cooperation, and the Ministry of Interior will study the request and alternatives for including associations in implementation, and then send their opinion to the Associations Registry within 5 working days.

4) The Ministry of Social Development / Associations Registry may, in cases it deems necessary, add implementation partners (sectors and/or governorates). The Ministry of Social Development / Associations Registry may request a working session/committee with the Ministry of Planning and International Cooperation and the Ministry of Interior to discuss the project, according to the following priority:
a. Associations within the ministry's jurisdiction. b. Associations outside the ministry's jurisdiction.
c. Non-governmental organizations in partnership with associations.
d. Non-governmental organizations.

5) If the Associations Registry confirms the completion of requirements for obtaining foreign funding and after receiving responses from the Ministry of Planning and International Cooperation, the Ministry of Interior, and concerned entities, His Excellency the Minister of Social Development / Chairman of the Board of Directors of the Associations Registry will contact the Prime Minister to present the requests to the Council of Ministers and propose the appropriate decision regarding the foreign funding the association wishes to receive within 5 working days.

6) The Prime Minister will inform His Excellency the Minister of Social Development / Chairman of the Board of Directors of the Associations Registry, and the Associations Registry will inform the requesting association, the Ministry of Planning and International Cooperation, the Ministry of Interior, and concerned ministries of the Council of Ministers' decision.

7) Concerned ministries, in coordination with the Governor and the Director of the Social Development Directorate in the field according to the project implementation location, will monitor associations that have obtained foreign funding. The concerned association will provide periodic progress reports on the project to the Ministry of Planning and International Cooperation, the concerned ministry, and the Ministry of Social Development, which will study these reports and evaluate their impact.

8) Necessity of evaluating project implementation: Each ministry will form a specialized unit to manage project monitoring and submit periodic reports according to the nature of the project and the evaluation model to be approved by the Associations Registry.

9) The concerned ministry will take the following procedures when studying the funding request:
a. Technical study of the funding request. b. Study of the financial, administrative, and legal status of the association.
c. Study of the area's need for the proposed project.
d. Clear and specific notes and recommendations, and coordination with the requesting associations to make amendments if necessary.

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

Associations within 5 working days, where the Ministry of Planning and International Cooperation verifies that the submitted proposal is within national priorities and whether the provided funding is part of bilateral cooperation agreements between the donor and Jordan, and whether the project falls under any international agreements, especially if it requires customs and/or tax exemptions.

3) The concerned ministry, the Ministry of Planning and International Cooperation, and the Ministry of Interior will study the request and alternatives for including other NGOs in implementation, and then send their opinion to the Associations Registry within 5 working days.

8) Necessity of evaluating project implementation: Each ministry will form a specialized unit to manage project monitoring and submit periodic reports.

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

2018/09/20
Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

B. Non-Profit Companies Registered with the Companies Control Department / Ministry of Industry, Trade and Supply:

1) Non-profit companies wishing to obtain external funding must submit an official request to the Companies Control Department / Ministry of Industry and Trade based on the approved form. The Department will send a copy to the concerned ministry, the Ministry of Planning and International Cooperation, and the Ministry of Interior. If the request is submitted to the Prime Minister's Office, the Office will send the request to the Companies Control Department / Ministry of Industry and Trade within two working days, which will in turn request the non-profit company to review and fill out the approved form. The form includes the following information:

Source of funding.
Identification of local partners - if any - to implement these projects in sectors and governorates.
Value of funding, account details, transfer details, and bank name.
Project name and objectives linked to national development goals, implementation location, and target groups.
Programs and activities planned for the project and the project budget.
Direct and long-term results of the project and performance measurement indicators.
Funding conditions.
Attached draft of the funding agreement to be signed.

2) Requests are sent by the Companies Control Department within two working days to the concerned entities (the concerned ministry, the Ministry of Planning and International Cooperation, and the Ministry of Interior). These entities/ministries will study the requests and send their opinion to the Companies Control Department within 5 working days. The Ministry of Planning and International Cooperation will verify that the proposal and provided funding are part of bilateral cooperation agreements between the donor and Jordan, and whether the project falls under any international agreements, especially if it requires customs and/or tax exemptions.

3) The concerned ministry, the Ministry of Planning and International Cooperation, and the Ministry of Interior will study the request and alternatives for including other NGOs (NGOs, CBOs) in implementation, and then send their opinion to the Companies Control Department / Ministry of Industry and Trade within 5 working days.

4) The Companies Control Department / Ministry of Industry and Trade may, in cases it deems necessary, add implementation partners (sectors and/or governorates). The Companies Control Department / Ministry of Industry and Trade may request a working session/committee with the Ministry of Planning and International Cooperation and the Ministry of Interior to discuss the project.

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

5) If the Companies Control Department confirms the completion of requirements for obtaining foreign funding and after receiving approval from the Ministry of Planning and International Cooperation, the Companies Control Department / Ministry of Industry and Trade will contact the Prime Minister to present the requests to the Council of Ministers and propose the appropriate decision regarding the foreign funding the association/institution wishes to receive within 5 working days.

6) The Prime Minister will inform the Ministry of Industry and Trade / Companies Control Department of the Prime Minister's response, and then the Department will inform the requesting non-profit company and concerned ministries if the requests for foreign funding are approved.

7) Concerned ministries, in coordination with the Governor according to the implementation location, will monitor the non-profit company that has obtained foreign funding. The company will provide periodic progress reports on the project to the Companies Control Department and the Ministry of Planning and International Cooperation, which will study these reports and evaluate their impact.

8) Necessity of evaluating project implementation: Each ministry will form a specialized unit to manage project monitoring and submit periodic reports.

Mechanism of Communication Between Ministries

Designate a liaison officer from each ministry to follow up on these projects and provide them with work plans and foreign funding requests.
Adopt email in correspondence related to obtaining comments and/or approvals from ministries and concerned entities on work plans and foreign funding requests.
Implementing entities that have obtained approval from the esteemed Council of Ministers must coordinate with the concerned authority and administrative governors in implementation areas.

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

Mechanism for Obtaining Approvals for Projects Implemented in the Field of Supporting Syrian Refugees and Iraqi Guests and Host Communities

Any association, organization, or non-profit company wishing to obtain external funding to implement project activities serving Syrians and/or Iraqis and/or host communities due to asylum must refer to the Ministry of Planning and International Cooperation to obtain the necessary approvals for implementing its project, based on Article (19) of the National Council for Planning Law No. 1 of 1971, which states as follows:
a. The Council is the link between all government and private ministries and institutions and external funding sources from other countries, external and international institutions, etc. b. No ministry, government institution, or private institution shall accept any financial or technical assistance in any form without the Council's approval.
The Humanitarian Aid Coordination Unit in the Ministry of Planning and International Cooperation / Secretariat of the Coordination Committee for Humanitarian Aid Affairs will provide members of the Coordination Committee for Humanitarian Aid Affairs with the meeting file containing plans and requests at least five working days in advance, enabling members of the Coordination Committee for Humanitarian Aid Affairs to study and discuss them with concerned parties in their ministries/institutions (such as sector working team members appointed to participate in preparing the Jordanian Response Plan (JRP) for the Syrian Crisis and/or others in the ministry), and obtain comments on these plans and a final opinion and proposal to be discussed during the committee's periodic meeting (twice monthly).

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

Proposed Mechanism for Submitting Requests, Obtaining Approvals, and Monitoring Implementation for Projects Under the Jurisdiction of the Coordination Committee for Humanitarian Aid Affairs

Any association, NGO, body, or other entity wishing to operate within the Kingdom must be registered in accordance with the law.
No implementing entity may directly implement any project before obtaining the necessary approvals from the Coordination Committee for Humanitarian Aid Affairs and/or the esteemed Council of Ministers, regardless of the type of activities and implementation locations.
Each organization must submit a detailed work plan for the project as shown below. A workshop was held on 2015/3/12 with representatives from funding entities, UN organizations, local and international NGOs, and members of sector working teams in ministries to inform them of the mechanism for filling out work plan and progress report forms.
The association or organization must adhere to a maximum of 10% for the administrative expenses item, which includes support team salaries (individuals working in the institution such as the financial director, program director, technical support staff, etc.), and does not include operational expenses such as salaries of project staff and expenses necessary to implement this project's activities.
Additional Project Support: Additional support during the project implementation period for which approval was obtained, if the organization receives this support, must attach a coverage letter from the funding entity/entities, a coverage letter from the organization, and a work plan for the additional support, which must not exceed 50% of the original project value (attached: Mechanism for Obtaining Additional Support).
New Project Phase: If the organization wishes to continue implementing project activities (even if for the same areas and same activities) after the end of the project implementation period, even by one day, it must follow the approval procedures for any new project.

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

Project activities to be implemented must align with the registration purposes upon which the registration certificate was obtained from the ministry/concerned entity, and a copy of the registration purposes must be provided to the Ministry of Planning and International Cooperation.
In case of any modification or change to activities, funding value, implementation locations, local partners, or any other matters related to project implementation, approval from the Ministry of Planning and International Cooperation for the proposed modifications must be obtained.
Specify implementation locations (Governorate name/City name), and state the financial cost of activities for each governorate/city as stated in the approved Governorates and Cities table.
The implementing entity must review the ministry/concerned supervising entity after obtaining the necessary approvals to sign a memorandum of understanding between the supervising entity and the implementing entity according to the approved model issued by the esteemed Council of Ministers under letter No. 4/14/1/35085 dated 2016/8/18 (attached herewith).
Coordination with the Administrative Governor within the jurisdiction area must be done before commencing implementation.
The Ministry of Planning and International Cooperation and the supervising entity on implementation must be provided with progress reports (every six months), including completion and spending percentages, number of beneficiaries and their nationalities, activities implemented, and implementation locations - according to the approved model - under Prime Minister's Office letter No. 4/14/1/35085 dated 2016/8/18.
In case of non-compliance with the decisions of the Coordination Committee for Humanitarian Aid Affairs and approval conditions, no new requests for the implementing entity will be considered until a letter from the concerned ministry confirms that the situation has been rectified.
Adherence to the approved financial support value, activities, duration, local partner, and implementation locations is required. In case of any modification, the Ministry of Planning and International Cooperation must be informed immediately.
Adherence to the principles and standards approved by the Council of Ministers regarding projects involving grants for establishing small and medium enterprises and home-based work (attached: List of Principles).
Adherence to the esteemed Council of Ministers' decision issued under letter No. 6/10/56/21116 dated 2018/9/9 (attached herewith).

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

Adherence to the Prime Minister's Office bulletin No. 32/1/11/3723 dated 2011/2/24 regarding adherence to the provisions of the Statistics Law to regulate statistical work.
The entity wishing to implement the study, survey, or evaluation must submit a request to the Ministry of Planning and International Cooperation / Humanitarian Aid Coordination Unit, which must include the following aspects:
a. Source of funding. b. Reasons and objectives of the study.
c. Methodology and main axes of the study.
d. Copy of the questionnaire (must be in Arabic). e. Scope of work (questionnaire distribution locations). f. The Ministry of Planning and International Cooperation must be provided with the final version of the study. g. Data ownership and publication rights: The organization or body shall not publish any information or results of the questionnaire or study before obtaining approval from the Coordination Committee for Humanitarian Aid Affairs. h. Terms of reference.
i. Participating entities in implementation.
j. List of names of persons who will implement the study and fieldwork through the questionnaire or focus groups and their obtaining necessary approvals. k. The organization or body is not permitted to commence implementation before obtaining approval from the esteemed Council of Ministers, and these studies and surveys must be implemented under the supervision of concerned entities regarding their topics.

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

Projects Directed to Support Syrians and Host Communities

The Ministry of Planning and International Cooperation has developed a work plan model for projects directed at Syrians and host communities, linking the activities in these plans to the objectives of the Jordanian Response Plan (JRP) for the Syrian Crisis. The project work plan must be filled out with all details (activities, funding value, implementation locations, local partners, etc.) on the electronic system (JORISS), which was created specifically to receive funding requests. This system allows the implementing entity to track the procedures and approvals until the esteemed Council of Ministers approves the submitted work plan, by assigning a number to each electronically accepted request.
Aid for Syrian refugees holding the Service Card issued by the Ministry of Interior or any card adopted subsequently must be identified.
Humanitarian projects directed at Syrians outside camps must target at least 30% of beneficiaries to provide services and activities to Jordanians and host communities.
Projects involving in-kind and cash assistance: Must be implemented after obtaining necessary approvals (as stated above) in advance coordination with the Jordanian Hashemite Charity Organization to obtain lists of Syrian names, and the Ministry of Social Development to obtain lists of Jordanian names.

Projects Directed to Support Iraqis and Host Communities

The work plan model for projects directed at Iraqis and host communities has been updated, linking the activities in these plans to the sectors and main activities approved for this purpose. The form must be filled out and sent via email and/or hard copy.
Humanitarian projects directed at Iraqis must target at least 30% of beneficiaries to provide services and activities to Jordanians and host communities.
Projects involving in-kind and cash assistance:
✓ In-kind and cash assistance: Must be implemented after obtaining necessary approvals (as stated above) in advance coordination with the Ministry of Social Development.

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Humanitarian Aid Coordination Unit

Humanitarian Aid Coordination Unit

Documents Required to be Attached with Project Work Plans

The organization must attach the following documents with each work plan sent to the Ministry of Planning and International Cooperation:
a. Cover letter from the project implementing entity.

b. Approval letter from the funding entity/entities, including its address and the entity's approval to provide support to this organization to implement the project, with clarification of the funding value and project implementation duration in months, and designation of the liaison officer for this entity/entities (details including name, organization phone number, mobile number, email), provided that this funding is additional and outside the framework of bilateral aid provided to the Jordanian government.

c. Signed project document between the implementing entity and the funding entity/entities.

d. Approval letter from the local partner - if any - including the partner's approval for partnership in implementing the project, the funding value they will receive, the nature of activities they will implement, and information about the liaison officer.

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Humanitarian Aid Coordination Unit

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