Regulatory Alerts2021-07-07
Added · Updated
Extension of Validity of Approvals Granted to Exchange Companies to Deal with External Parties
The Central Bank of Jordan has extended the validity of all approvals granted to licensed exchange companies for dealing with external parties, effective from a Board of Directors decision on July 1, 2021. This extension applies until these companies regularize their status in accordance with the Exchange Business Law and its regulations, provided the approved activities align with their licensed scope under Article 5 of System No. (39) of 2021. Companies must also adhere to specific articles from the Electronic Payment and Money Transfer System No. (111) of 2017 and the Instructions for Approving International Electronic Payment Systems No. (3/2020). Companies are required to implement an exit plan for any dealings whose purpose falls outside their licensed activities, as such approvals will otherwise be considered nullified.
[Central Bank of Jordan Logo]
Number: 10063/14/3/9 Date: 26/11/1442 AH Corresponding to: 7 / 7 / 2021 AD
Circular to Licensed Exchange Companies Subject: Extension of validity of approvals granted to exchange companies to deal with external parties
Greetings,
With reference to the approvals granted to licensed exchange companies to deal with parties outside the Kingdom, and subsequent to the decision of the Central Bank Board of Directors issued on 30/3/2021 and communicated to you by our Circular No. (6055/14/3/9) dated 14/4/2021, and taking into account the issuance of the Exchange Companies Licensing System No. (39) of 2021 on 7/6/2021, I inform you that, by virtue of the Central Bank Board of Directors' decision dated 1/7/2021, approval has been granted to extend all approvals granted to licensed exchange companies to deal with parties outside the Kingdom, including approvals issued to those companies after the date of issuance or effectiveness of the Exchange Companies Licensing System No. (39) of 2021, until those companies regularize their status in accordance with the provisions of the effective Exchange Business Law and the systems and instructions issued thereunder, provided that the purpose associated with the approval remains within the purposes licensed for the company to practice according to its category stipulated in Article (5) of the Exchange Companies Licensing System No. (39) of 2021, while observing the provisions of Articles (20/d) and (48/c) of the Electronic Payment and Money Transfer System No. (111) of 2017 and the provisions of Article (15/b) of the Instructions for Approving International Electronic Payment Systems No. (3/2020) dated 5/2/2020.
We emphasize the necessity for you to take the necessary measures and arrangements regarding your various dealings in line with the foregoing [including adopting a systematic exit plan to cease any dealings whose associated purpose falls outside the purposes licensed for the company to practice according to its category stipulated in Article (5) of the Exchange Companies Licensing System No. (39) of 2021], as those approvals will then be considered automatically nullified.
Please accept our highest regards,
Governor Dr. Ziad Fariz