Regulatory Alerts2003-01-01
Circular No. 20: Compliance with the Phrase 'Payable to the First Beneficiary'
The Palestine Monetary Authority issued Circular No. 20 on February 1, 2003, mandating that all banks operating in Palestine must strictly preserve the "Payable to the First Beneficiary" phrase on checks issued by the Ministry of Finance, government ministries, official institutions, or any other entity. Banks are explicitly prohibited from crossing out or altering this phrase, as doing so violates established check circulation rules and principles. Any bank that disregards this requirement will assume full liability for disbursing funds to unauthorized parties instead of the designated first beneficiary.
Palestine National Authority
Palestine Monetary Authority
Palestine
Palestinian National Authority
Palestine Monetary Authority
Palestine
Circular No. (20)
To all banks operating in Palestine
Date: 2003/2/1
Subject: Compliance with the Phrase "Payable to the First Beneficiary"
Pursuant to the provisions of Article (233) of Commercial Law No. (12) of 1966 and at the request of the Ministry of Finance, all banks operating in Palestine are required to comply with the phrase "Payable to the First Beneficiary" appearing on checks issued by the Ministry of Finance, all ministries and official institutions, or any other entity. Striking out the aforementioned phrase is prohibited, as it violates the principles and rules governing check circulation. The bank that does so shall bear responsibility for paying any check to anyone other than the first beneficiary.
Please accept the highest assurances of respect,
Dr. Amin Mohammad Haddad
Governor
Copy: The Minister of Finance, may God preserve him
Palestine, Gaza Governorate - P.O.Box: (4026) - Tel: (08-2825713) Fax: (08-2824599) / Ramallah - Al Bireh Governorate - P.O.Box: (452) Tel: (02-2980131) Fax: (02-2959922)
Palestine: GAZA - P.O.Box (4026) Tel. (08-2825713) Fax: (08-2824599) / Ramallah - Al Bireh - P.O.Box (452) Tel. (02-2980131) Fax (02-2959922)