Regulatory Alerts2024-06-26
Added · Updated
Financial Transactions with Legal Insurance Service Providers
The Central Bank of Jordan mandates that insurance companies must conduct all financial transactions through the bank accounts of licensed legal insurance service providers. The directive explicitly prohibits financial transfers to the personal bank accounts of natural persons associated with these entities, such as owners, partners, or managers. This requirement applies to insurance companies and is based on provisions from various licensing instructions for insurance agents, brokers, and management companies.
[Logo of the Central Bank of Jordan]
Central Bank of Jordan 1999-2024
Number: 9866 / 1 / 5 Date: 7 / 1 / 1445 AH Corresponding to: 13 / 7 / 2024
Dear Insurance Companies,
Subject: Financial Transactions with Legal Insurance Service Providers
With reference to the above subject, and based on the provisions of Item (5) of Paragraph (a) of Article (13) of the Instructions for Licensing Insurance Agents and Regulating Their Work and Responsibilities No. (10) of 2023, and Paragraph (h) of Article (12) of the Instructions for Licensing Insurance Brokers and Regulating Their Work and Responsibilities No. (11) of 2005 and its amendments, and Paragraph (t) of Article (13) of the Instructions for Licensing Reinsurance Brokers and Regulating Their Work and Responsibilities No. (4) of 2005 and its amendments, and Paragraph (z) of Article (17) of the Instructions for Licensing Insurance Business Management Companies and Regulating, Organizing, and Supervising Their Work No. (36) of 2010, and Paragraph (d) of Article (14) of the Instructions for Licensing Underwriting Agents and Regulating Their Work and Responsibilities No. (4) of 2010 and its amendments, please be informed of the necessity to conduct financial transactions through the bank accounts of the licensed insurance service provider, and not to conduct any financial transfers to the bank accounts of natural persons associated with the legal insurance service provider (Owner, Partner, Manager, etc.).
Please accept our highest respect.
Governor Dr. Adel Al-Sharkas