Regulatory Alerts2005-08-07
Added · Updated
Instructions of Money Penalties over the Banks’ Investments in Securities
The Central Bank of Jordan imposes monthly cash fines on banks exceeding investment limits in stocks and shares, setting the penalty at 0.002 of the violation amount for general breaches and 0.005 for breaches of specific company capital limits. These penalties, calculated on purchasing cost and effective from August 31, 2005, apply to direct or indirect investments, with the higher fine applied if both violations occur. Banks must submit monthly reports to the Central Bank to monitor compliance, particularly for foreign branches and subsidiaries, and must maintain prior approval and notification procedures for acquisitions exceeding 5 percent of a company's capital.
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