Bank of Jordan ownership transfer did not cause investment outflow ­— CBJ

AMMAN — The Central Bank of Jordan (CBJ) on Sunday said that the recent transfer of share ownership at the Bank of Jordan did not lead to any outflow of investments or money transfer from the Kingdom.

The CBJ explained that the operation merely involved the change of the share owner’s nationality and does not constitute a transfer of assets to foreign countries, as the companies that were registered outside of the Kingdom are possessed by the same current owners.

In a statement carried by the Jordan News Agency, Petra, the CBJ said that Tawfiq Fakhouri had informed the CBJ about the change of ownership of his shares at the bank, which was made merely for family arrangements.

As for acquiring the CBJ’s approval for the move, the statement said that Fakhouri was under the impression that such a measure did not require the bank’s consent, and that the CBJ has informed him that he had to apply for an approval, “which he pledged to do”.

The CBJ stressed that the ownership transfer does not affect the safety or the financial position of the Bank of Jordan, which remains “strong”.

Fakhouri recently disclosed on the Amman Stock Exchange website that he had transferred 81.6 million of his shares at the Bank of Jordan to other companies that are registered in foreign countries in his name.

Some media outlets described the operation as “outflow of investments from the Kingdom and a case of tax evasion”.

Assets transferred to companies in foreign countries would still be subject for taxation according to Article 3 of the Income Tax Law, which stipulates that any income generated in or from the Kingdom for any person regardless of the place of payment shall be taxable, including the interest, commissions, discounts, currency exchange differences, deposit profits, and profits from banks and other resident legal entities.