Regulatory Alerts2017-01-01
Decision No. (1) of 2017 on High-Risk Countries Non-Compliant with AML/CFT Standards
The Financial Follow-Up Unit of the State of Palestine issued Decision No. (1) of 2017 to designate specific countries as high-risk due to non-compliance with AML/CFT standards. The directive mandates a complete prohibition on financial dealings with North Korea, while requiring enhanced due diligence measures for transactions involving Iran, Afghanistan, and eight other listed jurisdictions. All Palestinian public financial institutions and competent authorities are legally bound to implement these tiered risk mitigation protocols immediately upon the decision's issuance.
Financial Follow-Up Unit
State of Palestine
Financial Follow-Up Unit
State of Palestine
Decision No. (2017/1)
Issued by the Financial Follow-Up Unit Dated 15 March 2017
Concerning High-Risk Countries Not Compliant with AML/CFT Standards
Pursuant to the provisions of Legislative Decree No. (20) of 2015 concerning the combating of money laundering and the financing of terrorism and its amendments, particularly paragraph (16) of Article (20),
and based on Decision No. (8J/2016) of the National Committee for Combating Money Laundering and Financing of Terrorism, issued on 01 December 2016, concerning the delegation to the Financial Follow-Up Unit to publish the list of high-risk countries issued periodically by the Financial Action Task Force (FATF),
and based on public interest requirements, it has been decided as follows:
First
The following countries are considered high-risk due to their non-compliance with AML/CFT standards:
(a) Democratic People's Republic of Korea / North Korea (prohibited to deal with).
(b) (Iran, Afghanistan, Bosnia and Herzegovina, Ethiopia, Iraq, Lao People's Democratic Republic (Laos), Syria, Uganda, Republic of Vanuatu, Yemen) (dealing with these countries is subject to specific measures).
Second
All public financial institutions in Palestine shall adopt the measures specified in the table attached to this Decision when dealing with the countries mentioned in the First section of this Decision.
Third
All competent authorities shall implement the provisions of this Decision from the date of its issuance.
A. Wael Lavi Director of the Financial Follow-Up Unit
- Attachment: Measures to be Taken When Dealing with High-Risk Countries.
State of Palestine – Al Birch P.O.Box 3981 Tel.: 0097022984089, 0097022967401 Fax: 0097022967426 E-mail: info@ffu.ps
Attachment to Decision No. (2017/1) Issued by the Financial Follow-Up Unit on 15 March 2017.
| Country Name | Measures to be Taken |
|---|---|
| Democratic People's Republic of Korea (North Korea) | Prohibition on dealing with all financial institutions and companies operating and licensed in North Korea, as well as those representing or acting on their behalf. This includes prohibiting business relationships and transactions executed from or to North Korea for natural or legal persons, and severing all correspondent banking relationships with financial institutions operating and licensed therein. |
| Iran | Necessity to adopt enhanced due diligence measures regarding business relationships with Iran, including financial transactions executed from or to Iran for natural or legal persons, and considering correspondent banking relationships with financial institutions operating and licensed in Iran. This must align with Legislative Decree No. (20) of 2015 concerning AML/CFT and its amendments, related instructions, and FATF Recommendation No. (19), until June 2017, at which point further steps against Iran by FATF will be monitored. |
| Afghanistan | Necessity to adopt enhanced due diligence measures regarding business relationships with the country, including financial transactions executed from or to the country for natural or legal persons, and considering correspondent banking relationships with financial institutions operating and licensed therein, in alignment with Legislative Decree No. (20) of 2015 concerning AML/CFT and its amendments and related instructions. |
| Bosnia and Herzegovina | |
| Ethiopia | |
| Iraq | |
| Lao People's Democratic Republic (Laos) | |
| Syria | |
| Uganda | |
| Republic of Vanuatu | |
| Yemen |
State of Palestine – Al Birch P.O.Box 3981 Tel.: 0097022984089, 0097022967401 Fax: 0097022967426 E-mail: info@ffu.ps