Mobile Payment Instructions - cbj.gov.jo

1 1 Mobile Payment Instructions of 2013, amended pursuant to the Instructions of 2017 which were amended according to the Board of directors decision No. (116/2017) dated 1st June, 2017 2 Mobile Payment Instructions Issued Pursuant to the Provisions of Article (3/C) of the Banking Law No. (28) for the year 2000, and Articles (26) and (29) of the Electronic Transactions Law No.(85) for the year 2001 Article (1): These Instructions shall be called Mobile Payment Instructions of 2013 and shall be effective as of March 1st, 2014. Definitions Article (2): The following terms and expressions shall have the meanings assigned thereto below wherever mentioned in these Instructions , unless the context indicates otherwise: The Central Bank The Central bank of Jordan.

2 The Bank A bank which is licensed to operate in the Kingdom according to the provisions of the Banking law. Mobile Payment A mean of Payment through using Mobile via the National Switch whether by the customer using his account at bank, or by opening an e-wallet account at Payment service provider. The National Switch An electronic system operated and oversee by the Central Bank, where banks, companies, and customers are registered to exchange financial transactions and document all transactions effected through the system. The net financial positions is worked out through the system and credited, when appropriate, to the accounts of banks or settlement banks, or debited to the accounts of banks or settlement banks through the Real Time Gross Settlement System (RTGS-JO) at the Central Bank or any system that is later employed.

3 Related Parties The Central Bank in its capacity as the National Switch 3 Operator, service providers and their agents, Mobile network operators, and settlement banks. The Company The financial company whose tasks involve Mobile Payment services through the National Switch, whereas the service provided should not conflict with the provisions of any other legislation governs its activities (if any). Service Provider The bank or the Company. Agent The authorized person who acts on behalf of the service provider in providing Mobile Payment services directly to customers. E-wallet A virtual account opened to customers at the service provider to enable customers conducting Mobile payments transactions.

4 The account (customers/ e-money) A account opened by the Company at the settlement bank and deposit the money on advance to provide Mobile Payment services . E-money A stored money value either electronically, magnetically, or by any other method, which represents a liability on its issuer. It is issued in return for receiving cash amounts, and is acceptable among dealing parties other than the issuer. Settlement Bank A bank contracted by the Company to open the required bank accounts to provide the service in accordance with the provisions of these Instructions . The customer The natural or legal person who has been registered by the service provider at the National Switch for benefiting from the Mobile Payment service.

5 Electronic Records An information massage that includes a transaction, a contract, or any other document that is generated, stored, used, copied, sent, reported, or received through electronic means. Instructions for Anti- Money Laundering and Counter Terrorism Financing The Instructions governing the requirements of anti-money laundering and counter terrorism financing for Mobile Payment service providers No. (1) for the year 2014, and any amendments thereto or any Instructions supersede them. Arbitration Committee The committee formulated in accordance with the provisions of this Instruction to resolve disputes among service providers, as well as disputes arising between any service provider and other related parties, of which 4 jurisdiction is approved by related parties pursuant to the concluded contracts.

6 Subscription to the National Switch Article (3): No person shall have the right to provide the Mobile Payment service except through the National Switch and after obtaining the Central Banks approval according to the provisions and conditions of this Instructions . Approval of Connectivity with the National Switch Article (4): Any party desires to connect with the National Switch and provide the Mobile Payment service must fulfill the following conditions: a- It must be a limited liability, or private shareholding financial company with a paid-up capital not less than one million and a half Jordanian dinars (JD million).

7 Banks shall be excluded from the provisions of this paragraph. b- Providing a special automated system that meets the technical requirements specified by the Central bank and handles the following main tasks: 1- Connect with the National Switch according to the technical and security requirements determined by the Central Bank for this purpose. 2- Submit and exchange all Mobile Payment transactions according to the terms and conditions stated in these Instructions . 3- Manage customers data and accounts related to the Mobile Payment system, whereas a single identification number is assigned for each account.

8 4- The system shall be able to provide the service at all times. A disaster recovery site must also be available. 5- The system must include tools to monitor transactions and issuing reports in accordance with the Central Bank s Instructions . The system must also be able to track customers transactions and ensure their authenticity and reliability. Article (5): The preliminary approval from the Central Bank is required to register any company for providing Mobile Payment services through connecting to the National Switch at official authorities concerned with companies registration or adding this service to the objectives of existing companies as follows: 5 a.

9 The application form for the initial approval of the Company shall be submitted using the Central Bank s form designated for this purpose and should include the following: 1- The company s name, type and capital. 2- The full name, nationality, resume of each of its founders, and the percentage of their direct or indirect share in the Company's capital. 3- Name and address of the Company s auditor. 4- Any additional information or data required by the Central Bank s Instructions or deemed appropriate by the Central Bank for deciding on the approval. b. The application shall be accompanied by the following: 1- The Company's memorandum and article of association, and its headquarter.

10 2- The Company s organizational structure. 3- A detailed description of the nature of activity to be exercised. 4- The Company s final financial statements which shall be certified by an auditor for the last three years or the duration of its business if less than three years, or conducting a feasibility study and proposed estimated budgets for the first three years of the Company s business, in addition to the bases of preparation if the Company still under establishment. 5- The Company's business plan for the next five years. 6- The Company's policies in antimony laundering and Counter financing terrorism, dealing with customers, complaints handling, dispute resolution mechanism and dealing with agents.