Regulatory Alerts2021-01-01
Palestine Monetary Authority Instruction No. 3 of 2021 Regarding the Purchase of Post-Dated Cheques by Money Exchange Companies
The Palestine Monetary Authority issued Instruction No. 3 of 2021 to regulate the purchase of post-dated cheques by licensed money exchange companies to stimulate the economic cycle. The directive mandates prior written approval, imposes a 25% capital limit on such purchases, and strictly prohibits earning interest or accepting guarantees on these transactions. It further requires strict adherence to anti-money laundering protocols, including enhanced due diligence and risk assessment, while establishing specific fee caps and enforcement penalties.
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