Regulatory Alerts2016-01-01
Circular No. 63: Bank Accounts for Trade Unions and Labor Federations
The Palestine Monetary Authority, following a directive from the Palestinian Ministry of Labor, requires all banks operating in Palestine to obtain an official Ministry letter specifying authorized signatories and their validity periods before opening new bank accounts for trade unions and labor federations. For existing union and federation accounts, banks must immediately freeze all previously authorized signatures and restrict transactions to deposits only until the organizations secure official Ministry approval and regularize their internal governance. This mandate enforces compliance with the Palestinian Labor Law to safeguard trade union financial operations and establish standardized regulatory oversight for union banking activities.