Regulatory Alerts2012-01-01
Instructions No. 1 of 2012 Regarding the Minimum Capital
The Palestine Monetary Authority issued Instructions No. 1 of 2012 to establish mandatory minimum paid-up capital requirements for money changers operating in Palestine. The directive sets tiered capital thresholds based on legal structure and operational scope, ranging from $100,000 to $2,000,000, and repeals conflicting prior licensing provisions. All affected entities must align their capitalization with these standards and submit a compliance schedule within one month, with full payment required by the end of 2013.
Palestine Monetary Authority
Palestine Monetary Authority
Instructions No. (1/2012)
To All Money Changers Operating in Palestine Date: Tuesday, February 28, 2012
Subject: Minimum Capital
In continuation of Instructions No. (2011/1) issued on June 1, 2011, concerning the licensing of money changers, the following are the instructions governing the capital of money changers:
- The money changer must maintain paid-up capital commensurate with the volume of its business.
- The minimum paid-up capital for money changers shall be as follows:
a- Money changers licensed to operate within city limits:
Denominated in US Dollars
| Capital | Legal Form |
|---|---|
| 250,000 | General partnership, Limited liability company |
| 500,000 | Private joint-stock company |
| 2,000,000 | Public joint-stock company |
b- Money changers licensed to operate outside city limits:
Denominated in US Dollars
| Capital | Legal Form |
|---|---|
| 100,000 | General partnership, Limited liability company |
| 250,000 | Private joint-stock company |
| 1,000,000 | Public joint-stock company |
- The first paragraph of Article (3) of Instructions No. (2011/1), which pertains to the capital of money changers upon their conversion into companies, is hereby repealed, and the provisions of these instructions shall apply to them.
- All money changers must regularize their status in compliance with these instructions and submit a repayment schedule for the capital within a period not exceeding one month from the date hereof, with full capital payment to be completed by no later than the end of 2013.
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
Ramallah - Al Bireh - P.O. Box: 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box: 4026 - Tel.: 08-2825713 - Fax: 08-2844487