Regulatory Alerts2012-01-01
Instructions No. 12 of 2012 Concerning Counterfeit Currency
The Palestine Monetary Authority issued Instructions No. 12 of 2012 mandating all Palestinian banks to implement strict internal procedures for detecting, detaining, and reporting counterfeit currency. The directive requires banks to train cash-handling staff, utilize advanced detection equipment, secure suspected notes in dual-controlled fireproof safes, and formally notify both the Public Prosecutor under Article 244 of the Penal Code and the Authority itself. These measures take effect immediately upon issuance and supersede any conflicting prior regulations.
Palestine Monetary Authority
Palestine Monetary Authority
Instructions No. (2012/12)
To All Banks Operating in Palestine
Date: Tuesday, December 18, 2012
Subject: Counterfeit Currency
In order to curb the phenomenon of currency counterfeiting/forgery, the Palestine Monetary Authority requests all banks operating in Palestine to take the following measures to combat this phenomenon:
- Establish internal procedures for handling counterfeit currency and prevent its circulation within the bank or among customers through bank staff or ATMs.
- Examine cash received from customers and verify the presence of security features to determine authenticity (genuine/not counterfeit).
- Provide advanced counterfeit detection machines to assist with speed and accuracy.
- Qualify and train all bank employees who handle cash on how to detect counterfeit currency and the procedures for handling it.
- If the bank suspects a banknote is counterfeit upon examination, it shall be detained, and a receipt report shall be prepared, signed by the cashier and the person presenting the cash, and approved by the branch manager. The report shall include: (depositor customer name) (person presenting the banknote), ID number and a copy thereof, the amount, denominations and serial numbers and a copy thereof, and a description of the transaction.
- Store suspected counterfeit cash in fireproof, secure safes under dual control and under the supervision of the branch manager.
- Report the transaction to the official authorities ("Public Prosecutor") in accordance with Article 244 of the Penal Code.
- Notify the Palestine Monetary Authority of the incident, along with evidence proving that the bank has reported it to the official authorities.
Accordingly, all banks are requested to commence implementation of these Instructions effective from the date of issuance. All provisions conflicting with these Instructions are hereby repealed.
Supervision and Inspection Department
Palestine Monetary Authority
Ramallah - Al-Bireh - P.O. Box: 452 - Tel: 02-2409920 - Fax: 02-2409922
Gaza - P.O. Box: 4026 - Tel: 08-2825713 - Fax: 08-2844487
E-mail: info@pma.ps
www.pma.ps