Regulatory Alerts2017-01-01
Circular No. 178/2017: Foreign Company Accounts
The Palestine Monetary Authority mandates that all banks operating in Palestine strictly comply with registration requirements for foreign companies, including Israeli entities, when opening new accounts. Banks must regularize existing accounts for foreign companies that lack completed legal procedures with the Companies Registrar or Ministry of National Economy by December 31, 2017, as a condition for maintaining business relationships. Additionally, financial institutions are required to implement enhanced due diligence measures for all transactions involving these foreign companies.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. 178/2017
To all banks operating in Palestine
Date: Monday, July 17, 2017
Subject: Foreign Company Accounts
Based on the requirements of Articles 38 and 219 of Companies Law No. (12) of 1964, and in addition to the requirements of Circular No. (2008/19) dated 06/02/2008 regarding the opening of accounts for foreign companies, we emphasize the necessity of complying with the requirements for registering foreign companies, including Israeli companies, when opening new accounts for such companies, and working to regularize the status of accounts opened for foreign companies that have not completed the legal procedures with the Companies Registrar/Ministry of National Economy by the latest date of 31/12/2017 as a condition for continuing to deal with them, and adopting enhanced due diligence measures regarding transactions related to those companies.
Supervision and Inspection Department
Palestine Monetary Authority
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | Email: info@pma.ps | www.pma.ps
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Email: info@pma.ps | www.pma.ps