Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (7) for the Year 2021

Regarding the Regulation of the Relationship Between Payment Service Companies and Users

Based on the provisions of Legislative Decree No. (17) of 2012 regarding the National Payments Settlement Law, particularly Articles (5) and (9) thereof, and based on what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (236) dated 23/06/2021, and in pursuit of the public interest, we have issued the following Instructions:

Chapter One

Definitions and Scope of Application

Article (1)

Definitions

The words and phrases contained in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

• Authority: Palestine Monetary Authority.
• Service Provider: The company licensed by the Authority to provide payment services.
• User: The person who uses the payment service as a payer or beneficiary.

Article (2)

Objective and Scope of Application

1. These Instructions aim to regulate the relationship between the Service Provider and Users in a secure and transparent manner.
2. The provisions of these Instructions shall apply to all companies licensed by the Palestine Monetary Authority to provide payment services.

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Chapter Two

Users

Article (3)

Protection of User Rights

The Service Provider shall comply with the following:

1. Adopt a clear policy for maintaining and protecting user information confidentiality.
2. Provide the User, upon signing and/or upon request, with a copy of the contracts, terms, and conditions.
3. Provide the User, upon request, with a statement showing details of executed financial transactions.
4. Provide guidance and technical support to Users, and answer their inquiries.
5. Provide a 24/7 hotline and any other means enabling the User to immediately report loss, theft, or unauthorized use of the payment service or its encryption codes and security information, provided that the report and its date and time are documented.
6. Notify the User immediately of any defect in the execution of a payment order.
7. Provide the User with a single written or electronic notification, at minimum via SMS, regarding any amendments to the terms and conditions at least one month prior to the implementation of such amendments.

Article (4)

Contractual Information

The Service Provider shall organize the relationship with the User based on clear contractual foundations containing at a minimum the following:

1. The terms and conditions related to the service, and the rights and obligations arising therefrom.

2. An accurate and complete description of the payment service and its benefits.

3. Procedures for handling objections and complaints.

4. The mechanism for obtaining financial statements and notifications.

5. Including the following obligations on the User:

   a. Use the payment service and its applications securely and in compliance with their requirements and procedures, and take all precautionary measures to safeguard codes and/or passwords and any other security requirements.

   b. Notify the Service Provider without delay from the moment the User becomes aware of any potential error in their accounts and/or any unauthorized orders executed, or upon theft or loss of payment instruments.

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Article (5)

Complaints

The Service Provider shall comply with the following:

1. Define the mechanism and procedures for submitting complaints and objections by Users.
2. Designate a department/unit/officer to handle User complaints.
3. Provide suitable channels for submitting complaints and publicize them.
4. The handling of complaints and their outcomes against any service agents shall be the responsibility of the Service Provider.
5. Submit a periodic quarterly report to the Authority covering all received complaints and the actions taken to address them, in accordance with Annex No. (1).

Article (6)

Complaint Handling

The Service Provider shall comply with the following when handling User complaints:

1. Request the following basic information from the User at a minimum:

   a. Name of the complainant and contact details. b. Subject of the complaint. c. Any supporting documents for the complaint.

2. Deliver a notification to the User acknowledging receipt of the complaint by the Service Provider.

3. Register the complaint in a dedicated complaint log and include all relevant information.

4. Notify the User of any suspension within a maximum of (4) four days from the date of complaint submission, and grant them a period of (5) five working days to complete it.

5. Notify the User within a maximum of (10) ten working days from the date of complete complaint submission, including at a minimum the following information:

   a. Complaint reference number. b. Subject of the complaint. c. Final decision regarding the complaint, with reasons.

6. In the event that User complaints are not handled within the specified timeframe, or in the event of failure to handle complaints, Users shall have the right to submit the complaint to the Palestine Monetary Authority for resolution, and the Authority's decision shall be binding on the Service Provider unless the matter is under judicial review.

Article (7)

Disputed Payment Orders

The Service Provider shall refund the amount of disputed payment orders or those proven to have been incorrectly executed by the Service Provider to the User within (3) working days from the date the objection is validated.

Article (8)

Freezing of User Accounts

1. The Service Provider shall freeze a User account that has had no financial transactions for a period exceeding one year, provided that the User is notified at least (30) thirty days prior to the effective date of the freeze.
2. Accounts linked to commissions and fees charged by the Service Provider to the User, as determined by the Authority, are exempt from the freeze stipulated in paragraph (1) of this Article.
3. Establish a register titled "Dormant Accounts" containing a list of dormant account owners, account opening date, freeze date, current balance, all available information about them, and actions taken to reach them.
4. Provide dual control over dormant accounts, protect the register, and audit it periodically at a supervisory level higher than that applied to other accounts.
5. Develop and apply communication mechanisms with dormant account owners, designate responsible persons, document this communication, and prepare periodic reports and follow-up results.
6. A dormant account may be reactivated after the User or their legal representative signs a written request for reactivation according to the form approved by the payment service provider, as well as signing an acknowledgment of the accuracy of the account balances available in the User's account at the time of reactivation.
7. Maintain special files for reactivated dormant accounts, storing the User's request for reactivation and the acknowledgment of balance accuracy at the time of reactivation.

Article (9)

Closing of User Accounts

1. The Service Provider shall close the User's account upon request, without delay, and without affecting associated obligations.
2. The Service Provider may close a dormant account provided that the account balance is zero.
3. The Service Provider shall establish appropriate procedures ensuring the User can withdraw the entire current balance from the account, regardless of the daily withdrawal limit, and document this upon account closure.

Article (10)

Management of Deceased Users' Accounts

The Service Provider shall comply with the following:

1. Continuously update User data and monitor daily newspapers, various media outlets, and any means or systems provided by the Authority to identify deceased Users of the Service Provider.

2. Prepare procedures for handling deceased Users' accounts to ensure dual control and mitigate any risks related to these accounts, which shall include at a minimum the following:

   a. Place a hold on the deceased User's account in the Service Provider's systems upon learning of the death, preventing any transactions or operations on the account.

   b. Inventory all balances of the deceased User across different payment instruments and affiliated wallets, and place them under hold.

   c. Separate deceased Users' account files from other accounts, and attach documents and records confirming the accuracy of account balances.

   d. Obtain approval from the Service Provider's legal department or legal advisor for the distribution of shares to heirs according to the inventory of inheritance.

   e. Subject these accounts to the internal audit program at least once annually.

   f. Prepare periodic reports and follow-up results for these accounts, and provide the Authority with a quarterly report on deceased Users' accounts.

   g. If one year passes without settling the deceased's balances and transferring them to the heirs, the balances shall be transferred to an "Unclaimed Balances" account.

   h. After one year from transferring them to the "Unclaimed Balances" account, these accounts shall be advertised in a daily newspaper published in Palestine and/or on the Service Provider's website and social media, requesting heirs to contact the Service Provider.

   i. After one year passes without any person or entity claiming these account balances following the advertisement as stated in paragraph (h) of this Article, those balances shall be transferred to the Authority according to the mechanism determined by the Authority, accompanied by a detailed statement of all information and actions taken. If heirs contact the Service Provider after the balances have been transferred to the Authority, the Service Provider shall follow up on the matter.

Article (11)

Unclaimed Balances

1. Balances in dormant accounts that have been inactive for ten years from the date of the last transaction, without locating their owners during this period despite exhausting all possible communication means, shall be transferred to a separate (restricted) account called "Unclaimed Balances", whereby no transactions shall be permitted on the electronic wallet account into which those "Unclaimed Balances" are transferred.

2. One year after the date of transferring dormant accounts to unclaimed balances, the Service Provider shall advertise in a daily newspaper published in Palestine and/or on its website and social media the names of the owners of those accounts, after obtaining the Authority's approval, and request the owners of these balances to contact the Service Provider.

3. If the owners of those accounts are not located after an additional year from the date of publication of the advertisement, those balances shall be transferred to the Authority according to the mechanism determined by the Authority, accompanied by a list of their owners' names and all available information about them including identity documents, addresses, phone numbers, and a summary of actions taken to locate them.

4. The Authority shall be provided with a quarterly report regarding dormant electronic wallet accounts.

Article (12)

Fees and Commissions

The Service Provider shall comply with the following:

1. Comply with the instructions issued by the Authority regarding fees and commissions.
2. Publicize all fees and commissions clearly and explicitly, and publish them at a minimum on the Service Provider's website and the service's electronic application.
3. Provide Users with a written or electronic notification regarding any amendments to fees and commissions at least one month prior to the implementation of such amendments.
4. Obtain the User's prior consent to service costs and exchange rates, if applicable, before executing a payment order.
5. The User and the Service Provider may agree to deduct fees and commissions from the payment order amount.

Article (13)

Repeal

1. Instructions No. (3) of 2020 regarding the regulation of the relationship between payment service companies and users are hereby repealed.
2. Any provision conflicting with the provisions of these Instructions is hereby repealed.

Article (14)

Implementation and Enforcement

All competent authorities shall, each within their respective jurisdiction, implement the provisions of these Instructions, and they shall apply from the date of their issuance.

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Issued in the city of Ramallah on 30/06/2021 CE

Dr. Firas Malham Governor

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Note: Palestine Monetary Authority - Ramallah and Al-Bireh - P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 Gaza - Palestine P.O. Box 4026 Fax: +970 8 2844487 | Tel: +970 8 2825713 www.pma.ps