Instructions for Licensed Money Exchange Companies to Maintain Foreign Currency Accounts at Foreign Banks

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

Number: 2821
Date: 29/1/2017 AH
Date: 16/3/2017 AD

Circular to Licensed Money Exchange Companies

Subject: Instructions for Licensed Money Exchange Companies to Maintain Foreign Currency Accounts at Foreign Banks

Greetings,

Based on the provisions of Article (A/18) of Money Exchange Business Law No. (44) of 2015, we enclose herewith a copy of the Instructions for Licensed Money Exchange Companies to Maintain Foreign Currency Accounts at Foreign Banks, issued pursuant to the Board of Directors' Decision No. (2017/20) dated 29/1/2017.

Please accept our highest respect,

The Secretary
Dr. Ziad Fraiz

Number of Attachments: (3) Attachments

P.O. Box 27, Amman 11118 - Jordan Phone 201063909 * Fax 4638889, Website www.cbj.gov.jo Email info@cbj.gov.jo

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Instructions for Licensed Money Exchange Companies to Maintain Foreign Currency Accounts at Foreign Banks

Issued pursuant to the Board of Directors' Decision No. (2017/20) dated 29/1/2017 Based on the provisions of Article (A/18) of Money Exchange Business Law No. (44) of 2015.

Article (1): A money exchange company wishing to maintain foreign currency accounts at foreign banks must submit an application for the Central Bank's approval using the forms prepared for this purpose. The application must be signed by the authorized signatories of the company and stamped with the company's official seal.

Article (2): When reviewing a money exchange company's application for the Central Bank's approval to maintain foreign currency accounts at foreign banks, the following shall be considered:

• A. The extent to which the money exchange company complies with the provisions of all effective legislation in the Kingdom, particularly the Money Exchange Business Law and the effective instructions combating money laundering and terrorist financing for money exchange companies.
• B. That the external bank at which the account is intended to be opened is acceptable to the Central Bank of Jordan, taking into account the risks associated with such dealings.

Article (3): The account that a money exchange company intends to maintain in foreign currency at a foreign bank must meet the following conditions:

• A. The account must be in the name of the company, and its use is not permitted for any purposes other than those stipulated in the company's final license conditions or for the benefit of any partners or authorized signatories.
• B. The account must be managed solely by the persons authorized to sign on behalf of the company.
• C. The uses of the account opened abroad are limited to the following:
  1. Issuing and receiving financial remittances.
  2. Settling accounts with foreign correspondents.
  3. Any other uses pre-approved by the Central Bank of Jordan.

Article (4): A money exchange company that maintains foreign currency accounts at foreign banks shall not obtain direct or indirect credit facilities from abroad secured by these accounts or use them as collateral for the benefit of third parties.

Article (5): The money exchange company must inform the Central Bank in writing, in a timely manner, of the foreign banks that previously obtained the Central Bank's approval to maintain foreign currency accounts, their locations, and those for which account opening procedures were not completed or with which dealings were suspended. This notification must include the closure date for each account, the method of disposing of the balance, supported by necessary documents.

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Article (6): The money exchange company must provide the Central Bank with a quarterly statement of the balances of its accounts held at foreign banks, organized by bank and currency for each account, according to the form prepared for this purpose, no later than the tenth day of the date following the end of the period covered by the statement.

Article (7): The company must include detailed explanations regarding the balances of accounts held in foreign currency at foreign banks, according to the items of the forms referred to in Article (6) above, covering the entire financial year, within the explanations related to the company's final financial data.

Article (8): The company must always keep updated data regarding the foreign banks that previously obtained the Central Bank's approval to maintain foreign currency accounts. This data must include: the financial statements and credit rating of these banks, the credit rating of the countries where these banks are located, and their rating regarding anti-money laundering and terrorist financing systems. The Central Bank of Jordan must be informed immediately of any developments that may have a negative impact on these banks.

Article (9): These instructions shall come into effect from their date, and the conditions for opening foreign currency accounts for money exchange companies abroad, issued pursuant to Board of Directors' Decision No. (96/112) dated 20/10/2007 and amended pursuant to Board of Directors' Decision No. (2007/92) dated 29/5/2007, are hereby repealed.

Central Bank of Jordan
Money Exchange Business Supervision Department
P.O. Box (37) / Amman

Form (2/9/01)

Application for Approval for a Money Exchange Company to Maintain a Foreign Currency Account at Foreign Banks

Date of Application:
Company Name:

We request approval to open a foreign currency account in the company's name according to the data provided below, and we commit to fully complying with the provisions of Money Exchange Business Law No. (44) of 2015, the Law Combating Money Laundering and Terrorist Financing, and other relevant effective legislation.

Bank Name:
Address:
Account Type:
Currency Type:
Maximum Amount Intended to be Held:
Credit Rating of the Mentioned Bank:
Names of Authorized Signatories for the Account:
1- ………………………………………… 2. …………………………………………

We commit to providing the Central Bank with any data related to the above account upon request.

Company Stamp and Signature

Form (2/9/01)

Form for Issuing Foreign Currency Accounts for a Money Exchange Company at Foreign Banks

Company Name:
Country:

(Amount Transacted in Jordanian Dinars)

| Notes | Balance at End of Period | Total Debit Balance | Total Credit Balance | Balance at Start of Period | Account Holder | Bank Name | Total |
|----------|------------------|------------------------|------------------------|------------------|--------------|------------|-----------|
|          |                  |                        |                        |                  |              |            |           |

Accountant's Name and Signature:
Authorized Signatory in the Network:
Data:
Company Stamp and Signature: