Jordan Central Bank issues AI regulatory framework
CBJ announces AI guidelines for Jordan's banking sector
#Jordan #banking - The Central Bank of Jordan has issued a comprehensive regulatory framework for artificial intelligence use across the Kingdom's banking sector. The framework establishes clear regulatory foundations for banking institutions to adopt AI solutions whilst adhering to governance principles, risk management protocols, and data protection standards. The move also supports Jordan’s aspiration to position itself as a regional FintecH hub.
SO WHAT? - The Central Bank of Jordan’s move to introduce a regulatory framework for AI follows other leading central banks in the Middle East including Qatar and the United Arab Emirates. The rate of AI adoption in the banking sector has accelerated in recent years, although significant challenges remain. The new regulations together with initiatives such as CBJ’s regulated sandbox will support further AI adoption in the banking sector and collaboration between banks and technology firms.
Here are some key points about the regulatory framework:
The Central Bank of Jordan has issued a regulatory framework enabling safe and responsible adoption of AI technologies across the Kingdom's banking sector, announced by Governor Dr. Adel Sharkas.
The framework establishes clear regulatory foundations helping banking institutions adopt AI solutions whilst maintaining adherence to good governance principles, comprehensive risk management, data protection standards and privacy safeguards.
The Central Bank of Jordan's Steering Committee on Artificial Intelligence and Emerging and Future Technologies in the Financial and Banking Sector developed the framework to support safe technology adoption.
The regulatory approach aims to foster innovation whilst ensuring responsible use of emerging technologies, designed to boost Jordan's position as a regional FinTech hub supporting national digital transformation goals.
The framework forms part of broader Central Bank efforts to facilitate digital transformation across Jordan's financial sector through flexible and secure regulatory environments encouraging innovative financial technology adoption.
CBJ operates as an independent autonomous corporate body established in 1964, maintaining monetary and financial stability whilst serving as banker for financial institutions and fiscal agent for government entities.
ZOOM OUT - Global AI regulation in financial services faces several critical and unresolved challenges. Firstly, the rapid pace of technological innovation often outstrips regulatory capabilities. Secondly, there remains uncertainty over which AI models and use cases require oversight. Thirdly, the debate on what needs to be regulated and at what level. Whilst existing financial regulations around consumer protection and risk management may cover many AI applications, policymakers worldwide struggle to balance innovation promotion with comprehensive oversight, creating regulatory inconsistencies between jurisdictions like the EU's comprehensive AI Act versus more flexible approaches in other regions.
[Written and edited with the assistance of AI]
LINKS
CBJ AI regulatory framework - Arabic PDF (CBJ)