Regulatory Alerts2021-01-01
Instructions No. 5 Regarding the Regulation of the Relationship Between Payment Service Companies and Agents
The Palestine Monetary Authority issued Instructions No. 5 (2021) to establish a secure and transparent regulatory framework for payment service providers operating through principal and sub-agents in Palestine. The directives mandate prior written approval for agent contracts, impose strict anti-money laundering and know-your-customer obligations, and set specific monthly transaction limits for sub-agents ($2,000 for funding and $500 for cash withdrawals) and merchants ($300 for funding). Furthermore, the instructions clarify liquidity management responsibilities, require continuous supervision and public disclosure of approved agents, and explicitly repeal the previous 2020 instructions to ensure full compliance with national payment settlement laws.