Legal and Regulatory Framework

JoPACC exists within a well-founded legal environment for payment systems based on the rules, regulations, and circulars of the Central Bank of Jordan and JoPACC's Articles of Association. JoPACC adheres to the laws of the Hashemite Kingdom of Jordan, where it is incorporated and carries out all of its operations. Article 50 of the amended Central Bank Law No. 24 of 2016 enables the Central Bank of Jordan to allow other entities, such as JoPACC, to operate payment systems. In such cases, the Central Bank takes on the role of a regulatory authority that oversees the operations of the payment system operator and the payment system itself. The rights of the Central Bank as a regulatory authority are elaborated on in the Electronic Payment and Money Transfer Bylaw No. (111) of 2017 and in the Electronic Transactions Law No. 15 of 2015. These rights include setting and approving the operating procedures and technical standards of electronic payment systems, determining the financial and accounting requirements that must be followed by the system operator, and requesting any information deemed necessary from the payment service provider about the system or the operator itself. 

The rules and regulations that dictate the operations of a payment system operator within Jordan are primarily found in the Electronic Payment and Money Transfer Bylaw No. (111) of 2017. This bylaw gives private companies the right to operate electronic payment systems as long as they are licensed to do so and they meet the requirements set in the bylaw by the Central Bank of Jordan. JoPACC has received the necessary approval and licensing from the Central Bank of Jordan to act as a payment system operator. As a licensed operator, it is within JoPACC's objectives to operate digital payment systems, the needed clearing and settlement procedures for the transactions that occur on these systems, and any other activities related to these systems that are approved by the Central Bank of Jordan. 

Additionally, article (74) of the Banking Law No. (28) of 2000 and amendments detail exceptions to the bank secrecy laws stipulated in articles (72) and (73) of the same law. These exceptions waive the prohibition on the exchange of client data in instances where the CBJ sees fit for the safety and efficiency of domestic banking. As such, the exchange of client information via JoPACC's infrastructure for the execution of payments is well within these exceptions, as information sharing preserves the integrity of the overall financial sector and improves the capacity of the financial institutions to serve their clients and the overall market. 

In addition to the aforementioned laws and regulations, the Civil Law No (43) of 1976, which regulated contract law in Jordan, also supports JoPACC's activities as a payment system operator. The participants on any system operated by JoPACC must sign a contract document binding themselves to the system's operating rules, participation requirements, service level agreements, and business continuity plans. In addition, participants are contractually obliged to comply with CBJ arrangements to ensure that they meet any of the obligations that arise because of their participation in the systems. JoPACC is committed to always seek the consultation of the CBJ before issuing and/or amending any of the operating rules and procedures it maintains over its payment systems.