Bank of Jordan Implements Stricter Customer Verification Procedures

Enhancing Anti-Money Laundering and Terrorist Financing Efforts

The Bank of Jordan has introduced new policies aimed at strengthening customer verification procedures to prevent money laundering and terrorist financing. The bank’s new guidelines require customers opening accounts to provide a range of documents, including memoranda of association, articles of association, certificates issued by the Ministry of Industry, Trade and Supply, Amman Chamber of Commerce and Amman Chamber of Industry.

Document Requirements

To comply with these new policies, customers must provide identification data, including:

• Name of the legal entity
• National number (if applicable)
• Headquarter address
• Type of activity
• Date of establishment
• Names of authorized persons
• Phone numbers
• Purpose of dealing
• Sources of finance and income
• Other relevant information deemed necessary by the bank

Non-Profit Organizations

Non-profit organizations will also be subject to stricter verification procedures, including:

• Obtaining documents indicating an authorization from the organization for natural persons authorized to deal with the account
• Verifying the data provided through trusted sources, including contacting competent authorities and verifying if they are authorized to practice their activities inside the Kingdom

Foreign Companies

For foreign, unregistered companies that are not permitted to operate inside the Kingdom, the bank will ensure that they comply with Jordanian laws and regulations before opening an account. A legal opinion from the bank’s legal department will also be obtained in such cases.

Anti-Money Laundering and Terrorist Financing Measures

The new policies aim to prevent money laundering and terrorist financing by ensuring that customers’ names are not listed on any anti-money laundering or terrorism financing lists. The bank will:

• Refer to the Unified List relating to anti-terrorist financing and Money Laundering
• Check lists issued by the Security Council prior to establishing a banking relationship with a customer

Data Validation and Storage

The policies require branches to take necessary procedures to validate the correctness of data and information obtained from customers through trusted sources. The bank will:

• Keep copies of supporting documents relating to the nature of customers’ activities
• Obtain recommendations or authentications of customers’ signatures from reputable financial institutions or official bodies

Prohibited Activities

Under the new policies, the following activities are prohibited:

• Digital accounts
• Anonymous persons
• Fake identities
• Listed entities

Leasing safe deposit boxes for non-customers is also not permitted. Customers must update their information if they wish to rent a box.

Dormant Accounts

The Bank of Jordan has emphasized that customer accounts with credit balances will be deemed frozen (dormant accounts) if no deposit or withdrawal transactions are performed on the account within a specified period.