Regulatory Alerts2009-02-09
Added · Updated
Procedures for the Branching of Money Exchange Companies
The Central Bank of Jordan mandates that licensed money exchange companies submit written applications with a three-year feasibility study to open branches within their home governorate, while Limited Liability Companies retain the right to branch in all governorates. Applicants must secure initial conditional approval by providing a certified registration copy, appropriate premises, a guarantee equivalent to 10 percent of the minimum paid-up capital, and a 20 percent capital increase. Final approval requires the branch to conduct the same transactions as the head office, comply with existing laws, and notify the Central Bank of Jordan of its launch date.
PROCEDURES FOR THE BRANCHING OF MONEY EXCHANGE COMPANIES "GENERAL PARTNERSHIP COMPANY , LIMITED PARTNERSHIP COMPANY , LIMITED LIABILITY COMPANY (L.L.C)" First: The licensed Money Exchange Companies which are willing to have branches within the same governorate where their head offices are located shall submit a written application to the Central Bank accompanied with a feasibility study for the upcoming three years, with the exception of the Limited Liability Companies (L.L.C) which have the right of branching in all governorates. Second: Requirements for obtaining an initial conditional approval: A. Submitting a certified copy of the company's registration certificate with the new amendments. B. Providing an appropriate place for the branch. C. Submitting a certified guarantee or cash deposit to the order of the Governor of the Central Bank of Jordan equivalent to 10.0 percent of the minimum paid-up capital specified in the Law. D. Increasing the company's capital by 20 percent of the minimum capital specified in the Law. E. Paying the fees specified for this purpose. F. Submitting the required commitment for this purpose. G. Submitting a copy of the certificate of the company's registration at competent chamber of commerce and a copy of the occupation license after taking the new amendments into account. It is worth noting that the initial approval does not authorize the exchange company to execute money exchange business in the branch. Third: Requirements for obtaining the final approval of the branch: A. The branch should carry out the same transactions and businesses which allowed for the head office. B. Compliance with the laws and regulations in force. C. The CBJ should be notified with the date of launching.