Financial Crime World

Jordan’s Financial Institutions Must Comply with Strict Checklist, Experts Warn

The Jordan Securities Commission (JSC) has outlined a comprehensive checklist to ensure financial institutions in the kingdom comply with strict regulations. The JSC is responsible for regulating and monitoring the country’s capital market, protecting investors, safeguarding the market from risks, and promoting fairness, efficiency, and transparency.

Established Goals

The JSC was established in 1997 with primary goals that include:

  • Protecting investors
  • Safeguarding the market from risks
  • Promoting fairness, efficiency, and transparency

To achieve these objectives, the commission enforces rules governing the securities industry and encourages sustainable growth.

Entities Under Supervision

The JSC supervises a range of entities, including:

  • Amman Stock Exchange (ASE)
  • Securities Depository Center
  • Financial Services Companies
  • Issuers of Securities
  • Mutual Funds

Compliance Regulations

To ensure compliance and maintain healthy trading in the market, the regulator has implemented an integrated series of regulations. These include:

  • Electronic XBRL disclosure system: obliging all supervised entities to submit financial and non-financial disclosures in the XBRL language.
  • Roadmap for capital market growth: outlining recommendations to increase investor interest, make the market more attractive to issuers, reorient infrastructure institutions as private sector operations, and strengthen regulatory processes.

International Cooperation

The JSC is collaborating with the European Bank for Reconstruction and Development (EBRD) to foster capital market growth, stability, and reliability. The regulator also adheres to international standards, including:

  • Objectives and Principles of Securities Regulation (IOSCO)
  • International Financial Reporting Standards (IFRS)
  • International Auditing Standards (IAS)
  • Committee on Payment and Settlement Systems (CPSS-10) Principles for Financial Market Infrastructures
  • Organization for Economic Co-operation and Development (OECD) Principles of Corporate Governance
  • Financial Action Task Force’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CTF) Standards

Experts’ Warning

Experts warn that financial institutions in Jordan must strictly adhere to these regulations to avoid penalties and maintain a healthy capital market. The JSC’s compliance checklist serves as a vital guide for these institutions, ensuring they operate within the bounds of the law and protect investor interests.

By following this checklist, financial institutions can:

  • Avoid penalties
  • Maintain a healthy capital market
  • Protect investor interests

In conclusion, Jordan’s financial institutions must comply with the strict regulations outlined by the JSC to maintain a healthy and stable capital market. The compliance checklist serves as a vital guide for these institutions, ensuring they operate within the bounds of the law and protect investor interests.