Regulatory Alerts2018-01-01
Decision No. (2018/3) of 2018 on High-Risk and Enhanced Monitoring Countries for AML/CFT Compliance
The Financial Follow-Up Unit of the State of Palestine, via Decision No. (2018/3), designates North Korea and Iran as high-risk jurisdictions and mandates a complete transaction ban for North Korea and enhanced due diligence for Iran. The decision further places The Bahamas, Botswana, Ghana, Serbia, Pakistan, Syria, Sri Lanka, Angola, Yemen, Tunisia, and Trinidad and Tobago under enhanced monitoring, requiring financial institutions to apply ongoing due diligence and verify transaction purposes and fund sources. Issued on October 23, 2018, this directive updates previous AML/CFT listings and compels all Palestinian financial institutions to immediately implement these measures in compliance with FATF standards and national anti-money laundering legislation.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2018/239)
To all banks operating in Palestine
Date: Monday, October 29, 2018
Subject: High-Risk Countries and Countries Under Enhanced Monitoring for Compliance with International Standards
Attached is a copy of Decision No. (2018/3) issued by the Financial Follow-Up Unit on October 23, 2018, regarding High-Risk Countries and Countries Under Enhanced Monitoring for Compliance with International Standards, in accordance with the list issued by the Financial Action Task Force (FATF).
Accordingly, all banks operating in Palestine are requested to take the necessary legal measures to implement the requirements of the aforementioned decision and the corresponding measures to be taken.
Supervision and Inspection Department
Palestine Monetary Authority
Copy: The respected gentlemen / Financial Follow-Up Unit
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2415310 | Fax: +970 2 2415310 | Tel: +970 2 2415250 | Ramallah - Palestine P.O. Box 452
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Fax: +970 8 2844487 | Tel: +970 8 2825292 | Gaza - Palestine P.O. Box 4026
Email: info@pma.ps | Email: info@pma.ps
Financial Follow-Up Unit
State of Palestine
Financial Follow-Up Unit
State of Palestine
Decision No. (2018/3)
Issued by the Financial Follow-Up Unit
Dated October 23, 2018
Regarding High-Risk Countries and Countries Under Enhanced Monitoring for Compliance with International Standards
Pursuant to Article 20(16) of Decision-Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments,
Based on Decision No. (2016/4ج/8) of the National Committee for Combating Money Laundering and the Financing of Terrorism issued on December 1, 2016, regarding the delegation to the Financial Follow-Up Unit to publish the list of high-risk countries periodically issued by the Financial Action Task Force (FATF),
In continuation of Decision No. (2016/3ج/6) of the National Committee for Combating Money Laundering and the Financing of Terrorism issued on August 1, 2017, regarding the prohibition of financial transactions with the Democratic People's Republic of Korea,
And in light of public interest requirements, it is decided as follows:
First: High-Risk Countries
The following countries are considered high-risk due to strategic deficiencies concerning anti-money laundering and counter-terrorist financing standards, and shall be treated according to the following specifications:
| Country Name | Required Measures |
|---|---|
| Democratic People's Republic of Korea (North Korea) | All financial institutions are prohibited from conducting financial transactions with North Korea. |
| Iran | Continue applying enhanced due diligence measures regarding business relationships with Iran, including financial transactions executed from or to Iran for the benefit of natural or legal persons, and consider correspondent banking relationships with public and licensed financial institutions in Iran, in accordance with the provisions of Decision-Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, and the instructions issued with its approval, and with FATF Recommendation No. (19). |
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State of Palestine – Al Birih P.O. Box 3981 | State of Palestine – P.O. Box 3981
Tel: 0097022967401/2 | Fax: 0097022967426 | Tel: 0097022967401/2 | Fax: 0097022967426
Financial Follow-Up Unit
State of Palestine
Financial Follow-Up Unit
State of Palestine
Second: Countries Under Enhanced Monitoring for Compliance with International Standards
The following countries are under enhanced monitoring for compliance with international standards related to combating money laundering and the financing of terrorism, and shall be treated according to the following specifications:
| Country Name | Required Measures |
|---|---|
| Commonwealth of The Bahamas (Bahamas Islands) | Given that these countries have submitted a contextual commitment to address strategic deficiencies, all financial institutions must apply ongoing enhanced due diligence measures regarding business relationships with these countries, including financial transactions executed from or to these countries, to verify the purposes of the transactions and identify the source of funds, in accordance with Decision-Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, and the instructions issued with its approval. |
| Republic of Botswana | |
| Ghana | |
| Serbia | |
| Pakistan | |
| Syria | |
| Sri Lanka | |
| Angola | |
| Yemen | |
| Tunisia | |
| Trinidad and Tobago |
Third: Obligations of Financial Institutions
All financial institutions operating in Palestine must implement the measures specified in the tables outlined in Sections (First) and (Second) of this Decision.
Fourth: Update
This Decision serves as an update to Financial Follow-Up Unit Decision No. (2018/2) regarding High-Risk and/or Non-Compliant Countries concerning anti-money laundering and counter-terrorist financing standards, issued on July 10, 2018.
Fifth: Implementation
All competent authorities are required to implement the provisions of this Decision, which shall take effect from the date of its issuance.
Director of the Financial Follow-Up Unit
Awad Al-Afi
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State of Palestine – Al Birih P.O. Box 3981 | State of Palestine – P.O. Box 3981
Tel: 0097022967401/2 | Fax: 0097022967426 | Tel: 0097022967401/2 | Fax: 0097022967426