Regulatory Alerts2007-01-01
Circular No. 120: Issuance of New Checkbooks and Supervision of Their Users
The Palestine Monetary Authority issued Circular No. (2007/120) to establish mandatory minimum procedures for banks regulating the issuance, monitoring, and control of customer checkbooks in response to rising returned check volumes. The directive requires financial institutions to implement strict "Know Your Customer" verifications, balance thresholds, and tiered issuance limits based on account activity and risk assessments. Additionally, banks must centralize checkbook printing under dual-control safeguards, maintain detailed transaction monitoring, and submit monthly reports to the regulator on customers holding ten or more unused checkbooks.
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