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.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (63 / 2016)
To all banks operating in Palestine
Date: Wednesday, April 20, 2016
Subject: Bank Accounts for Trade Unions and Labor Federations
Attached for your information is the letter from His Excellency the Minister of Labor No. (13052) dated 2016/03/14 regarding the mechanism for handling bank accounts for trade unions and labor federations. Please take the necessary measures to implement the requirements of the aforementioned letter.
Deputy Governor
for Financial Stability Affairs
Copy: His Excellency the Minister of Labor.
Supervision and Inspection Department
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487
Email: info@pma.ps
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487
Email: info@pma.ps
Palestinian National Authority
Ministry of Labor
Minister's Office
P.O. Box: 390
Palestinian National Authority
Ministry of Labor
Minister's Office
Date: 2016/03/14
His Excellency Mr. Azzam Al-Shawa, may God protect him
Governor of the Palestine Monetary Authority
Greetings,
Subject: Bank Accounts for Trade Unions and Labor Federations
The Ministry of Labor extends its warmest greetings. In light of its legal responsibilities to protect trade union freedoms through its attention to and follow-up of the formation of unions and federations, and in compliance with the provisions of the Palestinian Labor Law, particularly Articles 3 and 5, which designate the Ministry of Labor as the competent authority to monitor various trade union organizations, we hope that Your Excellency will issue the appropriate directives to all banks operating in the territories of the State of Palestine to strictly adhere to the following:
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No bank account shall be opened for trade unions and labor federations without an official letter from the Palestinian Ministry of Labor specifying the authorized signatories for checks and banking transactions for these accounts, and the validity period of these signatures as stipulated in their approved internal regulations.
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Regarding existing and currently active accounts, we hope that Your Excellency will issue instructions to freeze all authorized signatures of approved signatories at various banks for all trade unions and labor federations that have not obtained an official letter from the Palestinian Ministry of Labor approving these signatories, and to convert these accounts to deposit-only status until they obtain an official letter from the Ministry of Labor permitting the modification of these accounts after settling their internal status.
Thanking you for your diligence and cooperation
Ministry of Labor
State of Palestine
State of Palestine
Ministry of Labor
Archives Department
15-03-2016
Issued / Received: 24
No.: 12060
Ramallah Al Lirwais
Tel: +970 2 2415250
Fax: +970 2 2409922
Ramallah - Palestine
Tel: +970 2 2415250
Fax: +970 2 2409922