Regulatory Alerts2012-01-01
Instructions No. (2012/03): Working Capital and Cash Guarantees
The Palestine Monetary Authority issued Instructions No. (2012/03) to regulate working capital and cash guarantee requirements for all exchange companies and individual money changers operating in Palestine. The directives mandate that net working capital must constitute at least 75% of paid-up capital, restrict unmanufactured precious metals to 20% of working capital, and impose strict limits on partner personal withdrawals tied to realized profits. Furthermore, the instructions establish tiered bank guarantee and cash deposit thresholds based on legal structure and location, set a maximum aggregate guarantee cap of $50,000 or $100,000 depending on corporate form, and require immediate submission of audited fixed asset statements for compliance verification.