Regulatory Alerts2017-04-09
Added · Updated
Instructions for Monetary Fines on Violations of Credit Concentrations and Foreign Currency Facilities No. (2005/23)
The Central Bank of Jordan imposes monetary fines on banks for violations of credit concentration and foreign currency facility instructions, effective from December 2005 data. Fines range from 0.5% to 10% of the excess amount for various breaches, including exceeding maximum credit limits for related parties, clients, or total concentrations, and granting facilities to specific individuals or entities. Additionally, lump-sum fines from 2500 to 40000 are levied for violating maximum limits on total working credit, current account overdrafts, direct real estate credit, and foreign currency facilities. Unrectified violations within three months incur doubled fines, and after six months, the bank's regulatory capital is reduced by the excess amount.