Central Bank of Jordan (CBJ)

Overview

The Central Bank of Jordan (CBJ) is the central monetary authority of the Hashemite Kingdom of Jordan. The CBJ holds the mandate to implement monetary and foreign exchange policy, supervise the banking and payment systems, and maintain financial system stability and integrity.

Establishment:

• Law enacted: 1959

• Operations commenced: October 1, 1964

• Constitutional status: Independent public institution with legal personality

Current Governor: Adel Sharkas (appointed April 1, 2026)

Core Functions:

• Release and distribution of Jordanian currency (Jordanian Dinar - JOD)

• Maintenance of national reserve of gold and foreign currencies

• Monetary policy implementation

• Banking system supervision

• Payment system operations and oversight

• Financial stability management

• Insurance sector supervision

• AML/CFT coordination

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

National Central Bank Authority

Regulatory Framework:

Banking System Oversight:

• CBJ authority to license and regulate banks

• Capital adequacy and operational standards

• Prudential supervision of banking sector

• Systemic risk monitoring

• Consolidated supervision of banking groups

Supervised Entities:

• Commercial banks

• Development banks

• Islamic banks (Sharia-compliant)

• Microfinance institutions

• Banking sector participants

Capital Adequacy:

• Basel III compliance framework

• Minimum capital requirements

• Capital conservation buffers

• Risk-weighted asset calculations

Operational Standards:

• Asset quality requirements

• Liquidity management standards

• Operational risk management

• Business continuity planning

• Governance standards

Stress Testing:

• Regular scenario analysis

• System-wide stress testing

• Individual bank resilience assessments

• Forward-looking risk assessment

Regulatory Authority:

The CBJ maintains supervisory authority over the insurance sector as part of overall financial system stability mandate.

Supervised Insurance Entities:

• Life insurance companies

• General insurance companies

• Insurance brokers and agents

• Reinsurance companies

Supervisory Standards:

• Capital adequacy requirements

• Solvency margins

• Reserve adequacy

• Operational governance

• Policyholder protection

Regulatory Framework:

Primary Authority:

• AMLU (Anti-Money Laundering Unit) - Central coordination authority

• CBJ: Payment system and banking sector oversight

• Coordinated enforcement approach

CBJ AML/CFT Responsibilities:

Banking Sector Oversight:

• Bank AML/CFT compliance supervision

• Transaction monitoring system requirements

• Know Your Customer (KYC) standards enforcement

• Suspicious transaction reporting procedures

Payment System AML/CFT:

• RTGS-JO AML controls

• JoMoPay AML/CFT standards

• eFAWATEERcom compliance oversight

• Participant institution monitoring

Cryptocurrency Regulation:

• Crypto asset service provider oversight (where applicable)

• Exchange and trading platform regulation

• AML/CFT requirements for crypto transactions

• Due diligence for high-risk crypto activities

Compliance Requirements:

Know Your Customer (KYC):

• Customer identification procedures

• Beneficial ownership verification

• Source of funds verification

• Risk assessment procedures

• Document retention (minimum 10 years)

Suspicious Transaction Reporting (STR):

• Mandatory reporting to AMLU

• Timely filing requirements

• Report completeness and accuracy

• No tipping off provisions

Customer Due Diligence (CDD):

• Risk-based approach

• Ongoing customer monitoring

• Enhanced due diligence for high-risk categories

• Periodic information updates

Institutional Cooperation:

• Joint task forces with AMLU

• Information sharing protocols

• Coordinated examinations

• Unified enforcement approach

JoMoPay Mobile Wallet Initiative:

Objective:

• Financial inclusion through mobile payments

• Unbanked and underbanked population reach

• Digital financial services expansion

Features:

• Mobile wallet for small-value transactions

• Person-to-person money transfers

• Bill payment capability

• Merchant payment functionality

• Integration with banking system

Impact:

• Increased financial services access

• Reduced reliance on cash

• Economic activity facilitation

• SME payment solutions

Regulatory Support:

• CBJ regulatory framework for mobile payments

• Consumer protection standards

• AML/CFT requirements for mobile wallets

• Technology oversight and approval

International Participation

Multilateral Memberships:

BIS (Bank for International Settlements)

• Member institution

• Participation in regular central bank meetings

• Access to BIS services and analysis

IMF (International Monetary Fund)

• Article VIII acceptance (current account convertibility)

• Regular IMF staff visits and consultations

• Financial arrangement participation (as needed)

• Technical assistance programs

World Bank

• Member institution

• Development financing coordination

• Technical cooperation

Regional Organizations:

Central Bank Governors Forums:

• GCC Central Bank Governors Council coordination

• Middle East and North Africa (MENA) regional forums

• Arab monetary cooperation initiatives

• Regional payment system integration

Bilateral Cooperation:

• Central bank relationship with peer institutions

• Supervisory cooperation agreements

• Information sharing protocols

• Joint examination arrangements

Standard-Setting Participation:

• Basel III capital standards compliance

• FATF AML/CFT recommendations alignment

• International Payment System standards (ISO 20022)

• Financial Stability Board (FSB) participation (through IMF coordination)

Regulatory Powers

Regulatory Authority:

The CBJ possesses comprehensive enforcement powers to ensure banking system compliance and financial system stability.

Enforcement Tools:

• Administrative warnings

• Regulatory fines and penalties

• Operating restrictions

• Capital requirement increases

• Dividend distribution restrictions

• Business activity limitations

• License suspension or revocation

Supervisory Actions:

• Examination authority (on-site and off-site)

• Document review and access

• Interview and testimony authority

• Account and transaction examination

• Third-party information requests

Investigation Procedures:

• Compliance examination programs

• Risk-based audit scheduling

• Thematic examinations

• Cross-border investigation coordination

Administrative Procedure:

• Due process protections

• Right of response

• Appeal mechanisms

• Public disclosure policies

Regulatory Role and Function

Legal Foundation

Primary Legislation:

Central Bank of Jordan Law (1959)

• Establishment charter

• Board structure and governance

• Policy-setting authority

• Regulatory and supervisory powers

• Independence provisions

Banking Law

• Framework for banking operations supervision

• Capital adequacy requirements

• Operational standards

Payment Systems Legislation

• Payment system establishment and regulation

• Settlement procedures

• Risk management standards

• System oversight frameworks

AML/CFT Legislation

• Anti-Money Laundering requirements

• Counter-Terrorist Financing standards

• Suspicious transaction reporting

• Customer due diligence (CDD) procedures

Constitutional Status:

• Central Bank operates under constitutional authority

• Independent authority to conduct monetary policy

• Cabinet coordination on monetary policy (not direct control)

• Parliamentary accountability through annual reporting

Licensing and Authorization Relevance

The Central Bank of Jordan (CBJ) is a key licensing authority in Jordan's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

Exchange Rate Regime:

Fixed Peg to USD:

• Official rate: 0.709 JOD per USD

• Established: 1995 (25+ years of stability)

• CBJ buying rate: 0.708 JOD per USD

• CBJ selling rate: 0.710 JOD per USD

Policy Rationale:

• Provides macroeconomic stability

• Policy predictability for investors and businesses

• Reduces exchange rate volatility

• Anchors inflation expectations

Reserve Coverage:

• Foreign reserves as of early 2026: ~$28 billion

• Coverage period: Approximately 10 months of imports

• Exceeds internationally recommended standard (3 months) by 3x+

Policy Tools:

• Reserve requirement adjustments

• Discount rate (rediscount facility)

• Open market operations (limited)

• Direct lending to banking system

Inflation and Price Stability:

• Inflation in January-February 2026: 1.10%

• Moderate inflation targeting

• Price stability priority

• Real interest rate management

Medium-Term Economic Growth:

• Governor projects over 4% medium-term growth

• Monetary policy supports economic expansion

• Balances growth with price stability

• Regional economic considerations

The CBJ operates and oversees multiple payment system platforms to facilitate efficient financial transactions and support economic activity.

RTGS-JO (Real Time Gross Settlement System - Jordan)

Establishment: 2002 (modernized in 2015)

Operational Status:

• Key pillar of Jordan's payment infrastructure

• Centralized electronic settlement system

• Operated by Central Bank of Jordan

• Real-time, gross, and final settlement basis

Technical Standards:

• ISO 20022 standard adoption (2015)

• First in Middle East/North Africa region

• Second globally for recognized international standards

• High-speed, reliable settlement

Settlement Process:

• Bilateral credit transfers

• Real-time settlement capability

• Interoperability with retail payment systems

• Final settlement in CBJ accounts

Participants:

• All CBRT-authorized credit institutions

• Clearing houses and settlement entities

• Interbank transfer facilitation

JoMoPay (Mobile Payment Service)

Launch Date: April 1, 2014

Operational Framework:

• Mobile payment system (electronic system)

• Registered users: Banks, companies, beneficiaries

• Financial transaction exchange platform

• CBJ operates and provides oversight

Service Features:

• New and safe means for immediate electronic payment

• Mobile transfer capability

• Payment order functionality

• Small-value transaction focus

Use Cases:

• Person-to-person (P2P) transfers

• Bill payments

• Purchases and merchant payments

• Utility and service payments

• Fund distribution

Technical Capability:

• 24/7 availability (where supported by participants)

• Instant or near-instant settlement

• Integration with bank mobile applications

• Multiple payment channels

eFAWATEERcom (Electronic Bill Presentment and Payment)

Establishment: 2014

Purpose:

• Facilitate and accelerate bill payment processes

• Connect institutions with payment services providers

• Multiple payment channel integration

Connected Entities:

• Public sector institutions

• Government services

• Utility companies (water, electricity, gas)

• Telecommunication companies

• Transportation companies

• Educational institutions

• Banking network

Payment Channels:

• Bank branch counter payments

• ATM payments

• Mobile banking platforms

• Internet banking

• Mobile payment (JoMoPay) integration

• Jordan post offices

• Kiosks and payment points

Transaction Volume (2023):

• Transactions processed: ~52.6 million

• Total transaction value: ~11.6 billion JOD

• Growing adoption and usage

System Integration:

• Interoperability with RTGS-JO

• Links to retail payment systems

• Settlement coordination with ACH and ECCU

• Mobile wallet integration

Additional Payment Systems

Electronic Cheque Clearing Unit (ECCU):

• Cheque clearing and settlement

• RTGS-JO interoperability

• Reduced clearing cycles

Automated Clearing House (ACH):

• Bulk payment processing

• Payroll and repetitive payments

• Retail payment settlement

• RTGS-JO integration

Reserve Management:

Foreign Reserve Holdings:

• Total reserves: ~$28 billion (as of 2026)

• Composed of:

• Foreign government securities

• Gold reserves

• Special Drawing Rights (SDRs)

• Cash and liquid assets

Reserve Adequacy:

• Coverage: 10+ months of imports

• International benchmark: 3-6 months recommended

• Jordan exceeds standard by significant margin

• High financial stability indicator

Reserve Currency Composition:

• US Dollar (primary)

• Euro

• British Pound

• Other major currencies

• Gold

Exchange Rate Management:

• Peg maintenance operations

• Intervention in FX markets (when necessary)

• Stability assurance to market participants

• Predictable FX environment

Bilateral Swap Arrangements:

• Regional central bank coordination

• Emergency liquidity facilities

• Currency swap agreements

• Bilateral credit lines

Payment Systems Governed or Overseen

The CBJ operates and/or oversees the national payment and settlement infrastructure of Jordan through the Jordan Payments and Clearing Company (JoPACC), a domestically-owned payment systems operator.

JoPACC (Jordan Payments and Clearing Company)

Ownership: Joint ownership by CBJ and all commercial banks in Jordan

Established: 2017

Role: Domestic payment system operator managing micro and retail digital payment systems in Jordan

Regulatory Status: Operating under CBJ supervision and oversight

Core Functions:

• Owner and operator of domestic digital payment systems

• Settlement infrastructure provider

• Retail and micro payments processing

• Payment system modernization and innovation

CliQ - Instant Payments System

Type: Real-Time Payments (Instant Payments) Platform

Launch: Recently deployed and expanding

Function: Immediate, 24/7 fund transfers between bank accounts and mobile wallets using simple payment identifiers.

Key Features:

• Settlement: Immediate money movement

• Availability: 24/7 without interruption

• Identification: Simple aliases (mobile number) bypass need for traditional IBANs

• Integration: 19 participating banks integrated into mobile banking apps

• Transaction Volume: Over 5 million transactions per month

Market Penetration: Actively expanding across Jordan's banking sector with strong adoption trajectory

Source: JOPACC | We Connect and Innovate Digital Payments, JoPACC: Jordan Marks a Decade of Digital Financial Services Developments

JoPACC System Portfolio

Other Systems Operated by JoPACC:

• JoMoPay: Mobile wallet platform

• eFAWATEERcom: Online bill payment system for paying utilities and government services

• Electronic Cheque Clearing System (ECC): Cheque processing and clearing

• Automated Clearing House (ACH): Debit and credit bank transfers and batch payments

JoPACC Strategic Development (2023-2026)

JoPACC announced its quadrennial strategy for 2023-2026 with major initiatives:

Instant Payments Expansion:

• CliQ instant payment system launch and deployment

• Integration across multiple banks and participants

• 24/7 service capability

Mobile Payment Upgrades:

• JoMoPay system enhancement and modernization

• Alias support in money transfers (using mobile numbers, email)

• QR code payment enablement for merchant transactions

Digital Financial ID:

• Launch of digital financial ID system

• Enable remote and digital onboarding to financial services

• Reduce documentation burden for account opening

Payment Systems Summary Table

Source: JoPACC Strategic Development

Relationship to Other Regulators

The Central Bank of Jordan (CBJ) operates within Jordan's broader financial regulatory architecture and maintains relationships with:

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Executive Leadership:

• Governor: Adel Sharkas (appointed April 1, 2026)

• Vice Governor: Senior management team

• Board Members: CBJ Board of Directors

Organizational Structure:

• Monetary Policy Department

• Banking Supervision Department

• Payment Systems Department

• Financial Stability Department

• AML/CFT Compliance Department

• Foreign Exchange Management Department

• Insurance Supervision Department

• International Relations

Contact Information:

Headquarters:

Central Bank of Jordan

Amman, Jordan

Official Address:

P.O. Box 37

Amman, Jordan

Postal Code: 11118

Official Website: https://www.cbj.gov.jo/

Regulatory Communications:

• Banking inquiries: Through banking supervision portal

• Payment system participation: Payment systems department

• AML/CFT compliance: Compliance unit

• General inquiries: CBJ contact form (available on website)

Key Department Contacts:

Payment Systems Department:

• RTGS-JO operations and inquiries

• JoMoPay participant relations

• eFAWATEERcom oversight

• Large Scale Payment Systems - https://www.cbj.gov.jo/EN/Pages/Large_Scale_Payment_Systems

Banking Supervision:

• Banking license applications

• Prudential regulation inquiries

• Compliance and examination coordination

Mobile Payment Service:

• JoMoPay information and support

• Mobile payment system inquiries - https://www.cbj.gov.jo/EN/Pages/Mobile_Payment_Service_JoMoPay

Bill Payment System:

• eFAWATEERcom information

• Electronic payment questions - https://www.cbj.gov.jo/EN/Pages/Electronic_Bill_Presentment_and_Payment_System_eFAWATEERcom

Notes on Naming and Language