Instructions for Documenting and Retaining Exchange Operations, Keeping Records and Accounts, and Preparing Financial Statements No. 11/2023

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

Central Bank of Jordan

Number: 17412 / 9 / 11
Date: 3 / 2 / 1445 AH
Corresponding to: 8 / 10 / 2023 AD

Instructions for Documenting and Retaining Exchange Operations, Keeping Records and Accounts, and Preparing Financial Statements No. (11/2023) issued by virtue of Central Bank Board of Directors Resolution No. (2023/8/28) pursuant to the provisions of Article (21) of the Exchange Business Law No. (44) of 2015.

Article (1): These instructions shall be called "Instructions for Documenting and Retaining Exchange Operations, Keeping Records, and Preparing Financial Statements," and shall apply to all services provided by licensed exchange companies to customers and shall be effective from its date.

Article (2): The definitions contained in Exchange Business Law No. (44) of 2015 shall be adopted wherever they appear in the provisions of these instructions, unless the context indicates otherwise.

Cash Handling

Article (3): When the company carries out a cash withdrawal operation, it must use original withdrawal vouchers and adhere to the following:
a. Retain these vouchers in an organized and sequentially numbered and dated manner, provided that they include the following information as a minimum:

1. Company/Branch name and logo.
2. Number of the safe from which cash was withdrawn.
3. Day, date, and time.
4. Name and signature of the cashier.
5. Serial number.
6. Amount, currency, and valuation price if possible.
7. Authentication and company stamp.
8. Purpose and destination of cash withdrawal.
   b. Attach documents confirming the completion of the operation, so that accounting entries related to the withdrawn cash can be prepared according to proper procedures.
   c. Open an account under the name "Cash in Transit" for the purpose of recording cash withdrawal operations from the company.

Keeping Accounts and Records

Article (4): The company must maintain organized records and accounts in accordance with the effective legislation and adhere to the following:
a. Record all financial operations in the accounting system immediately upon their occurrence and according to accounting principles, with the necessity of informing the Bank in case of a system malfunction or failure and working to resolve it as quickly as possible. b. Inventory cash balances at the end of each business day and reconcile them with the balances in the accounting system, with the necessity of documenting this, stating the reasons for any differences if they exist, and resolving them according to accounting principles.
c. Not to carry out any offsetting or splitting of operations, ensuring the completion of their accounting cycle and according to accounting principles.
d. Store and archive records and entries on a secure external storage medium, ensuring business continuity and easy access at any time, taking into account the required retention period under effective legislation as appropriate, and for no less than five years from the date of termination of the relationship or operation, whichever is longer.

Article (5): The company must retain a copy of the invoices/or notices provided to customers in an organized and sequentially numbered and dated manner, including the customer's name and signature, the amount and nature of the operation, and its execution date, to be retained for a period of no less than five years from the date of termination of the relationship or operation, whichever is longer.

Audited Final Financial Statements

Article (6): The company must provide the Bank with the audited final financial statements for the ended financial year within the period specified by law, taking into account the following:
a. To be signed by the General Manager and those authorized by the company for administrative and financial matters - for partnership companies and simple limited partnerships - as for other companies, they shall be signed by the Chairman of the Board of Directors/Board of Managers or his deputy in his absence. b. To be duly certified by the legal accountant by stating his name, license number, classification category, and signature, provided that his signature is certified by the Jordanian Association of Certified Public Accountants and in line with its requirements.
c. Include in the financial statements the legal accountant's report and opinion and detailed clarifications - as a minimum - on the following:

• Accounts payable and accounts receivable listed in the statement of financial position and the date of their origination, with an indication of whether they were subsequently paid after the date of the financial statements and the date thereof.
• Transactions with related parties of the company.
• The volume of lawsuits filed against the company and the volume of provisions allocated for them.
• Any amounts reserved or restricted from withdrawal.
• Any cases of embezzlement, forgery, theft, fraud, shortage in actual assets, penetration operations, or insecure access to electronic payment systems used and/or owned by the company, with an indication of the extent of the loss incurred by the company as a result and any negative repercussions on the company's financial position and the measures taken to address them.
• The company's operating results for each of the head office and branches separately, in addition to the amount of current assets, fixed assets, and total assets for each as of December 31 of each year.
• Details of prepaid expenses and accrued expenses listed in the statement of financial position as of December 31 of each year, with clarification of their recording date in the records and an indication of whether accrued expenses were subsequently paid after the date of the financial statements and the date thereof.
• Any material events that affected/affect the company's operating results.
• Listing any outstanding unpaid amounts, including outstanding unpaid remittance amounts, under a separate item in the other liabilities account within the statement of financial position and in accordance with the requirements of International Financial Reporting Standards in this regard, with a detailed statement of these amounts including the date of their recording in the company's records and whether they were subsequently paid after the date of the final financial statements.
  d. A letter signed by the legal accountant stating that the statements extracted from the company's accounting system match the audited financial statements. e. Attach the statements listed below:
• A statement of the company's total volume of transactions in issuing and receiving financial remittances, whether in Jordanian Dinars or foreign currencies, during the year, distributed by month, with an indication of the total revenues generated therefrom.
• A statement of the company's volume of transactions in importing and exporting foreign banknotes and coins, gold, and precious metals during the year, distributed by month, with an indication of the total revenues generated therefrom.
• A statement of the names of the top (5) markets/countries with which the company deals in issuing and receiving financial remittances, with an indication of the volume of these transactions, the revenues generated therefrom, and the average commission rate collected during the year.
• A statement of balances in Jordanian Dinars and foreign currencies as of December 31 of each year.
• A statement of total sales and purchases against Jordanian Dinars, distributed by month, ensuring that their totals match the amounts included in the company's final financial statements.
• A statement of details of lawsuits filed against the company and the clear opinion of the company's lawyer on the company's position regarding each case separately and the extent of the need to allocate any provisions for them.
  f. Attach a copy of the contract concluded between the company and the legal accountant, ensuring it includes a provision stating that he verifies the company's compliance with the provisions of the Anti-Money Laundering and Terrorism Financing Law and the effective Exchange Business Law and the instructions and decisions issued thereunder, provided that the Bank is provided with the legal accountant's assessment of the company's compliance with policies and procedures related to anti-money laundering and terrorism financing. g. The company shall commit to providing the Bank with its response to any inquiries and/or clarifications and providing it with all necessary data for the purpose of completing the study of the company's final financial statements, and responding to all correspondence issued to it in this regard within the specified deadline. h. If the Bank requests any amendments to the financial statements or their clarifications, the company must make these amendments and provide the Bank with the amended and duly approved statements, certified by the company's auditor, within the specified deadline to enable the appropriate decision to be taken regarding them.

General Provisions

Article (7): When the company carries out its exchange services by accepting bank checks for those services, it must record these operations in a special traceable account that shows the basic information of the checks and their collection dates.

Article (8): A company wishing to utilize any location outside its licensed site for the purpose of retaining documents or archiving must submit a prior written request to the Bank for this purpose, taking into account adherence to the following:
a. The site shall be limited solely to storing the company's documents. b. Not to conduct exchange business within the site and to provide all requirements for secure document storage and general safety and security systems.
c. Inform the Central Bank in case of any modification to the site or its relocation to another site.
d. Provide the Central Bank with a lease contract duly certified by the competent authorities.

Article (9): The Exchange Business Instructions issued pursuant to the provisions of Exchange Business Law No. (26) of 1992 are hereby repealed.

Governor
Dr. Adel Al-Sharkas