Jordan’s Central Bank Unveils AI Guidelines for Banking Sector
This marks a major step in Jordan’s efforts to modernize its financial system and embrace digital innovation while safeguarding consumer trust and financial stability.
The Central Bank of Jordan (CBJ) has introduced a new regulatory framework to govern the use of artificial intelligence (AI) within the country’s banking sector. This marks a major step in Jordan’s efforts to modernize its financial system and embrace digital innovation while safeguarding consumer trust and financial stability.
The framework provides comprehensive guidelines for how banks and financial institutions in Jordan can adopt AI technologies in an ethical, secure, and transparent manner. It outlines principles and standards designed to ensure that AI applications promote innovation without compromising data privacy, fairness, or risk management protocols.
One of the core aims of the framework is to enhance the competitiveness of the financial sector by encouraging the responsible use of AI. It stresses the importance of transparency and explainability in AI-driven decision-making, requiring that systems be understandable to both users and regulators. The framework also addresses the need to prevent algorithmic bias and discrimination, ensuring that all customers are treated fairly, especially in credit scoring, loan approvals, and customer service automation.
In terms of risk management, the framework mandates that all AI models undergo continuous testing, validation, and performance monitoring. This is intended to minimize unintended consequences, such as incorrect predictions or decisions that could negatively affect customers or institutions. Institutions are also required to establish robust governance mechanisms, including designated AI oversight bodies, thorough documentation of AI use cases, and clear policies for accountability and escalation.
A strong emphasis is placed on data privacy and cybersecurity. The use of personal and financial data in AI systems must comply with existing laws and CBJ regulations, ensuring that data is handled responsibly and securely. The framework highlights the need for banks to integrate AI risk into their overall risk governance structures, with clear roles and responsibilities at the executive and board levels.
This initiative forms part of Jordan’s broader digital transformation strategy, aligning with national objectives to enhance financial inclusion, economic efficiency, and innovation. By proactively regulating AI use in banking, the CBJ aims to position Jordan as a regional leader in responsible fintech development.
The Central Bank has committed to regularly reviewing and updating the framework as global standards and AI technologies evolve. Banks and financial institutions across the Kingdom are expected to begin aligning their operations, systems, and governance models with the new regulations.
