Regulatory Alerts2022-01-01
Circular No. 152/2022: Principal and Sub-Agents for Payment Service Companies
The Palestine Monetary Authority issued Circular No. 152/2022 to mandate strict compliance measures for payment service companies regarding the onboarding and management of principal and sub-agents. The directive requires companies to prohibit dealings with unlicensed financial institutions, screen all agents against current national blocking lists upon engagement and periodically, and register them using verified trade names and official identification or registration numbers. Additionally, payment service providers must update agent records annually, adopt standardized classifications for agent activities, and adhere to the specific contracting requirements outlined in PMA Instructions No. 5 of 2021.
[Logo of the Palestine Monetary Authority]
PALESTINE MONETARY AUTHORITY
Circular No. (152/2022) To all payment service companies in Palestine Date: Thursday, July 07, 2022
Subject: Principal and Sub-Agents for Payment Service Companies
In order to ensure the safety of payment service companies and mitigate the risks of money laundering and terrorist financing, as well as any potential risks, the Authority requires the implementation of necessary measures, safeguards, and controls to comply with the following:
- Prohibition of dealing with unlicensed financial institutions.
- Screening agents against currently enforced blocking lists in Palestine upon contracting and on a periodic basis.
- Registering agents on payment systems according to the trade name and personal ID number/registration number recorded in the identity proof document and registration and licensing certificates issued by competent authorities.
- Updating agent names and data on the systems annually.
- Adopting standardized classifications for the nature of agents' work for registration on payment systems.
- Contracting requirements for agents as specified in Instructions No. (5) of 2021.
Supervisory Group Palestine Monetary Authority