Regulatory Alerts2017-01-01
Instructions No. (J/2) of 2017 Regarding Dealing with Money Changers and Money Exchange Companies Operating and Licensed in Israel
The National Committee for Combating Money Laundering and Financing of Terrorism in the State of Palestine has issued Instructions No. (J/2) of 2017 to classify Israeli money changers and exchange companies as high-risk entities. The directive strictly prohibits Palestinian banks and licensed financial institutions from conducting direct or indirect financial transactions with these Israeli entities unless they secure prior written approval from the Palestinian Monetary Authority, the Palestinian Companies Registrar, and the relevant foreign supervisory body. Institutions must regularize their compliance by March 30, 2018, and settle all pre-existing financial positions related to these entities according to coordinated directives from the Monetary Authority and the Financial Monitoring Unit.