Regulatory Alerts2006-12-26
Added · Updated
Instructions for Compliance Function in Banks
The Central Bank of Jordan issued Instructions Number 33/2006 requiring banks operating in the Kingdom to establish an independent compliance function and adopt a written compliance policy approved by the Board of Directors. The regulations mandate that executive management set up a permanent compliance department with sufficient authority and resources, while the Board must evaluate compliance risk management efficiency at least annually. Banks are obligated to submit their approved policies, along with details of the Head of Compliance and staff qualifications, to the Central Bank of Jordan. These instructions apply to all banks and their subsidiaries and became effective three months after their issuance on December 26, 2006.