Security and Regulatory Conditions for Cash Processing, Storage, and Transfer Companies and Cash-in-Transit Companies

CENTRAL BANK OF JORDAN

Security Conditions and Regulatory Conditions for Cash Operations Required to be Available by Companies Working in the Field of Private Protection and Guarding that Provide Cash Processing, Storage, and Transfer Services

In addition to what was mentioned in the Central Bank of Jordan's Memorandum to Licensed Banks No. (2019/11) dated 2019/04/02 and the Regulations Governing Private Protection and Guarding Activities for the year 2023 and its appendices, companies working in the field of private protection and guarding that provide cash processing, storage, and transfer services must adhere to the following:

1. Adherence to what was mentioned in the aforementioned Central Bank of Jordan's Memorandum to Licensed Banks No. (2019/11).
2. Obtaining prior approval from the Central Bank of Jordan, the Ministry of Interior, and other competent authorities to provide cash processing, storage, and transfer services, and ensuring the suitability of the company's main headquarters and branches from all aspects, including security aspects.
3. The private protection and guarding company must be committed to the provisions of the Regulations Governing Private Protection and Guarding Activities for the year 2023 and must be classified in the first category.
4. External guarding must be assigned to the main headquarters and branches, and internal guarding must be assigned to the cash processing and storage unit on a 24-hour basis.
5. Cash must not be transferred between the company's sites, the Central Bank of Jordan, licensed banks and their branches, and their clients (regardless of its value) except by armored vehicles dedicated to cash transfer and owned by the company itself, provided that these vehicles comply with the technical and security conditions mentioned in Appendix "2" of the Regulations Governing Private Protection and Guarding Activities for the year 2023.
6. Cash in transit (In-Transit) between the company's sites, the Central Bank of Jordan, licensed banks and their branches, and their clients must be insured under a separate insurance policy or within the company's main cash-in-storage insurance policy.
7. The company must insure the cash stored with it under a main insurance policy, ensuring that the cash stored by the company at any time does not exceed the amount of this policy, including cash prepared for processing.
8. Companies must annually provide the Central Bank of Jordan and the Ministry of Interior with the financial ceiling for cash storage and processing covered by the insurance policy and any amendments thereto, for the purpose of reviewing the security requirements that align with these ceilings by the concerned authorities.

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CENTRAL BANK OF JORDAN

9. The main headquarters and branches of the private protection and guarding company must be equipped with all security requirements, including providing a special unit for cash processing and storage containing (a main sealed safe, machines dedicated to counting and sorting cash according to specifications approved by the Central Bank of Jordan, designated areas for receiving and delivering cash, protection and security systems on doors and entrances, surveillance cameras, early warning systems against fire and theft directly connected to the unified emergency number 911 at the General Security Directorate / Operations and Control Directorate).
10. Weapons must be kept for work purposes in a security safe when not in use, within a secure place and under the custody of persons authorized by the company. Receipt and delivery operations of these weapons from the safe must be recorded in ledger books and signed by the concerned persons.
11. It is necessary to obtain prior approvals from the Central Bank of Jordan, the Ministry of Interior, and other competent authorities if any company wishes to change its main site or any of its branches, establish a new branch, or close any of its branches.
12. Employees working in the cash processing unit must be qualified and must receive certified training from the machine supplier company and/or the company itself. Contracts for purchasing cash processing (counting and sorting) machines from specialized companies must include training programs for employees to operate them.
13. Employees working in the cash unit must obtain prior security approvals from the Ministry of Interior.
14. The main sites and branches of companies must be selected outside residential areas, and the entrance and exit of cash transfer vehicles must be separate from the entrance and exit of employees. Cash receipt and delivery must take place in non-visible areas that cannot be easily accessed by others.
15. Counting and sorting machines used must be updated to be able to detect counterfeit cash periodically and whenever necessary.
16. Companies must contact the concerned authorities (Central Bank of Jordan and Ministry of Interior) to obtain necessary approvals for providing cash processing, storage, and transfer services to non-banking entities before contracting with them.

It should be noted that the Central Bank will conduct periodic inspection tours of company sites (main and branches) regarding cash management, including cash processing and storage.

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CENTRAL BANK OF JORDAN

Security Conditions and Regulatory Conditions for Cash Operations Required to be Available by Companies Working in the Field of Private Protection and Guarding that Provide Cash Transfer Services Only

In addition to what was mentioned in the Regulations Governing Private Protection and Guarding Activities for the year 2023 and its appendices, companies working in the field of private protection and guarding that provide cash transfer services only must adhere to the following:

1. Cash must not be transferred between the company's sites, the Central Bank of Jordan, licensed banks and their branches, and their clients except by armored vehicles dedicated to this purpose as stated in the aforementioned regulations.
2. Amounts transferred between the company's sites, the Central Bank of Jordan, licensed banks and their branches, and their clients (In-Transit) must be insured under a separate insurance policy or within the company's main insurance policy.

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

Number: 1/2/5503 Date: 26 Rajab 1440 AH Corresponding to: April 2, 2019 AD

Memorandum to Licensed Banks No. (11 / 2019)

Greetings,

Given that some banks have begun entrusting specialized and licensed companies to perform cash management services on their behalf, and in order to enhance the security and supervisory controls specific to cash security, the Central Bank has established foundations and conditions that these companies must meet, under the responsibility of the licensed bank. It is noted that the Central Bank views cash management operations performed by licensed banks and managed by a third party on their behalf as an integral part of the licensed bank's operations and tasks; therefore, any instructions issued by the Central Bank in this regard apply to them.

Conditions that Licensed Banks Wishing to Process Their Cash with Specialized Companies Must Comply With, Under the Bank's Responsibility

1. These companies must be licensed by security authorities and relevant parties.
2. The cash processing site at the company must be fully covered by security cameras, and the recording period required by banks must be adhered to.
3. The licensed bank must have the right to access the recordings of these cameras.
4. The site must be secured and connected to General Security surveillance, covered by guard personnel on a 24-hour basis (provision of security guarding).
5. Adherence to cash sorting according to Central Bank Circular No. (2018/7) dated 2018/2/21 and any subsequent circulars issued by the Central Bank in this regard.

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6. Processed cash must be provided to the Central Bank in two levels (cash suitable for re-issue, and cash not suitable for re-issue).
7. Adherence to binding and packaging cash according to Central Bank Circular No. (2018/52) dated 2018/11/4 and any subsequent circulars issued by the Central Bank in this regard.
8. Processed cash supplied to the Central Bank by these companies is under the responsibility of the licensed bank and must be labeled with (the licensed bank's label).
9. The security of the site and the controls of the processing process must be evaluated periodically by the licensed bank's internal auditor and external auditor or any specialized entity, and these reports must be provided to the Central Bank.
10. Adherence to Central Bank Memorandum No. (2017/16) dated 2017/4/18 regarding cash transfer and any subsequent circulars issued by the Central Bank in this regard.
11. Cash must be stored by the company in fortified rooms and/or security safes under collective supervision.
12. The ceilings retained at the company must be determined according to the licensed bank's policies and procedures, with the necessity of ensuring that the amount is at its minimum limits and that it is insured against all risks.
13. Full adherence to the provisions of banking secrecy contained in the prevailing Banks Law, instructions for practicing banks' activities by electronic means, and internal control and supervision instructions.
14. It is necessary for the licensed bank to obtain prior approval from the Central Bank for the cash management service it wishes to entrust to specialized companies to perform on its behalf.

• Cash management service includes processes of collecting funds from the licensed bank's clients and companies and any other entities and storing them at the company entrusted with performing the service, as well as counting, sorting, packaging, storing, distributing, and feeding ATMs and branches and bank clients with the bank's cash stored at the company and any other related processes.

Please accept our highest respect,

Governor Dr. Ziad Friez

P.O. Box 37 Amman 11118 Jordan * Phone: 4/4630301 * Telegram: Central Bank/Amman * Telex: 21476, 21766, 21200 * Fax: 4639734, 463133, 4638889