Instructions for the Basic Bank Account No. (2019/1)

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

[Logo of the Central Bank of Jordan]

Number: 27/3/1897
Date: 4/2/2019 AD
Corresponding to: 29/5/1440 AH

Instructions for the Basic Bank Account
No. (2019/1)

Issued pursuant to the provisions of paragraph (b) of Article (99) of the Banks Law No. (28) of 2000 and its amendments, and to the provisions of paragraph (b/13) of Article (4) and paragraph (b) of Article (65) of the Central Bank of Jordan Law No. (23) of 1971 and its amendments.

Out of the Central Bank of Jordan's keenness to enable all segments of society, especially the financially excluded, to access financial and banking services, and with the aim of enhancing financial inclusion and contributing to achieving financial, economic, and social stability, it has been decided to adopt the following principles to enable the use of the Basic Bank Account product.

Article (1): Name of Instructions and Scope of Application These instructions shall be called "Instructions for the Basic Bank Account" and their provisions shall apply to banks operating in the Kingdom.

Article (2): Definitions a. The words and phrases contained in these instructions shall have the meanings stated in Article (2) of the Banks Law No. (28) of 2000 and its amendments, and Article (2) of the Central Bank of Jordan Law No. (23) of 1971 and its amendments.

b. The following words and phrases shall have the meanings assigned to them below wherever they appear in these instructions, unless the context indicates otherwise: -

Basic Bank Account: A bank account in Jordanian Dinars for resident Jordanian customers with special conditions and features, targeting financially excluded individuals who do not have bank accounts, in accordance with the provisions of these instructions.

Financially Excluded Persons: Individuals legally qualified to deal with banks who do not own any type of bank account with any of the banks operating in the Kingdom and wish to conduct banking transactions within limits and costs commensurate with their income and circumstances.

Article (3): Requirements for Opening a Basic Bank Account Banks shall commit to opening basic accounts for financially excluded individuals, provided that the following are observed:

a. Verifying that the applicant does not have a bank account with the service-providing bank and obtaining a declaration from the customer that they do not currently have accounts or banking transactions with other banks operating in the Kingdom.

b. Obtaining the minimum customer identification data, in accordance with simplified due diligence procedures, which include the following data:

1. Full name (four parts)
2. National ID number
3. Place of birth / Country of birth and date of birth
4. Gender (male / female)
5. Marital status.
6. Nature of work / Type of activity
7. Source of income.
8. Monthly income (Annual income).
9. Information about the employer, if any.
10. Current residence address (city, area, nearest landmark).
11. Phone number / Mobile number
12. Ultimate (real) beneficiary of the account.

Appendix No. (1) shows the simplified due diligence procedures.

Article (4): Basic Services Provided by the Account The basic banking services provided by the Basic Bank Account include the following:
a. Cash withdrawal and deposit. b. Check deposit into the account.
c. Outgoing and incoming bank transfers from the account.
d. ATM card. e. Electronic banking services.

Article (5): Prohibited Services
The bank is prohibited from any of the practices below regarding basic accounts, except after studying the account holder's financial solvency and converting the account from a basic bank account to any other type of account according to the bank's approved procedures:
a. Granting credit facilities. b. Granting a checkbook.
c. Granting a credit card.
d. Granting credit interest or prizes on the account.

Article (6): Closure of the Basic Bank Account

1. The bank may close the basic account in the following cases:
   a. The customer providing the bank with false or misleading data. b. The customer having another bank account, either before or after opening the basic account.
   c. The customer not adhering to the terms and conditions of the account.
   d. If there has been no withdrawal or deposit activity on the account, and the customer's account balance is zero, and the account holder could not be reached for a period exceeding six months.

2. The bank must inform the customer if their account is closed.

3. If it is found that the customer has other bank accounts or banking transactions, the bank has the right to claim from the customer all commissions and fees from which the customer was previously exempted, provided that the bank informs the customer of this.

Article (7): If a balance is found in the customer's account and there has been no withdrawal or deposit activity on the account, and the account holder could not be reached for a period exceeding six months, the account shall be subject to the provisions of dormant accounts.

Article (8): Services, Commissions, and Fees Banks shall commit to providing services and adhering to the limits, commissions, and fees specified in Appendix No. (2).

General Provisions

Article (9): a. There is no minimum balance for the basic account. b. The bank must notify an individual whose application to open a basic bank account has been rejected, within a maximum of (5) working days from the date of receiving the application, stating the reasons for the rejection.
c. Banks must adhere to the provisions of the Internal Procedures Instructions for Handling Complaints of Financial and Banking Service Customers No. (2017/1) dated 28/8/2017.
d. Banks must raise awareness among financially excluded groups of their right to use the Basic Bank Account and educate them about their duties and responsibilities regarding the use of the account. e. Banks must commit to providing the Central Bank with an annual statement, no later than January 15 of each year, which includes at a minimum the following information:

• Number of existing accounts
• Number of accounts opened during the year
• Number of active accounts
• Number of inactive accounts
• Distribution of accounts by branches
• Distribution of accounts by gender.
• Distribution of accounts by age.
• Number of accounts converted to regular accounts.

f. If the Basic Bank Account is converted to any other type of account, the bank must take due diligence measures for these customers as stipulated by the provisions of our instructions No. (2018/14) dated 26/6/2018 and according to the nature of their risks related to money laundering and terrorist financing. g. If a bank is found to be in violation of any of the provisions of these instructions, the Central Bank may take any of the penalties and/or measures stipulated by the provisions of the effective Central Bank Law and/or Banks Law. h. If transfers are received for the customer for a consecutive period exceeding 6 months, leading to exceeding the specified limit, the bank must convert the basic account to a regular account.
i. The customer must provide the bank with an undertaking to inform it if they open an account with another bank other than the basic account.

Article (10):
These instructions shall come into effect (60) days from their date of issuance.

Governor
Dr. Ziad Fariz

Appendix (1)
Simplified Due Diligence Procedures for the Basic Bank Account

1. Suffice with obtaining a copy of the civil status identity card for customers after viewing the original and verifying it using original documents, data, or information from a reliable and independent source (Civil Status Department).
2. Comparing the customer's name with the names of individuals and entities listed on the sanction lists issued pursuant to United Nations Security Council resolutions.
3. Ascertaining the customer's activity and understanding the purpose and nature of the customer's relationship with the bank.
4. In the event that a person acts on behalf of the customer (e.g., power of attorney, authorized signatory, dealing with persons with limited legal capacity, etc.), it must be verified that they are authorized to do so, and their identity must be identified and verified according to the due diligence procedures stipulated by the effective instructions (not limited to simplified due diligence procedures in this case).
5. Identifying the identity of the real beneficiary and taking reasonable measures to verify their identity.
6. Exercising ongoing due diligence regarding business relationships, updating data, and scrutinizing transactions conducted throughout the relationship to ensure consistency of these transactions with what the bank knows about its customer, their activity pattern, and the nature of their risks.

Appendix (2)
Available Services, Limits, Ceilings, and Commissions

Service	Limits and Ceilings	Commissions
Issuance of ATM card	-	No issuance fee or monthly ATM service fees.
Deposit service (cash/checks) through the branch	Maximum (350) Jordanian Dinars per transaction, with a maximum of two transactions per month.	No commission, except for collecting 500 fils for each deposit transaction after exceeding the maximum number of transactions, which must be declared to the customer.
Cash withdrawal service through the branch	According to available balance and up to two withdrawals per month maximum.	No commissions borne by the customer, except for collecting 500 fils for each withdrawal transaction after exceeding the maximum number of transactions.
Cash withdrawal service through ATM	According to available balance and no limits on the number of transactions.	No commission, except for the specified commission when the customer uses another bank's ATM.
Bank transfer service	Outgoing and incoming transfers, maximum two transactions for each type of transfer.	Same fixed commissions as other account types according to effective instructions in this regard.
	Incoming transfers from the Royal Hashemite Court, the National Aid Fund, a government or military entity, or an international aid institution accredited by the Ministry of Social Development.	No commissions borne by the customer due to banks.
Access to electronic banking services for account management and electronic payment	According to available balance and no limits on the number of transactions.	Same fixed commissions as other account types according to effective instructions in this regard.
Balance	In Jordanian Dinars, with no minimum limit and a maximum of (700) Jordanian Dinars, taking into account the provisions of item (h) in Article (9) of these instructions.	-