Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (143/2021)
To all banks operating in Palestine
Date: Wednesday, July 07, 2021

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Subject: Centralization of Customer Basic Databases and Linkage to Reliable Sources

Based on the Palestine Monetary Authority's plan to transition toward a centralized database for financial institution customers, ensuring institutions can leverage digital ID and achieve electronic Know Your Customer (KYC) compliance, while providing neutral and reliable sources to identify and verify customers' basic data, a memorandum of understanding has been signed with the Palestinian Ministry of Interior. This aims to enable banks to inquire about citizens' basic identity data from the Civil Registry. In this regard, banks are requested to take the necessary immediate steps to utilize the service specifically provided via the Credit Information Systems link at the Palestine Monetary Authority.

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First: Importance of Linking to the Civil Registry

1. Providing a centralized database that facilitates obtaining the necessary data to establish and maintain business relationships and access financial and banking services.
2. Providing neutral and reliable sources to identify and verify customer identity and the integrity of basic data, in alignment with Recommendation No. (10) of the Financial Action Task Force (FATF) recommendations.
3. Enhancing and regulating account opening and updating processes for customers, thereby supporting future digital transformation.
4. Enhancing the capacity to deliver innovative electronic services that meet customer needs, contributing to addressing modern Fintech developments and laying the foundation for using digital ID in providing electronic services and transactions.
5. Contributing to strengthening the anti-money laundering and counter-terrorist financing environment and mitigating risks to which banks may be exposed.

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Second: Inquiries from the Civil Registry

1. The inquiry report response regarding a citizen's ID number on the Civil Registry includes the citizen's photograph and basic data, specifically: (Personal ID number, first name, father's name, grandfather's name, family name, mother's name, date of birth, place of birth, gender, marital status, religion, place of issue, date of issue, vital status "alive or deceased", spouse's name, spouse's ID number, names of minor children and their ID numbers).

2. Inquiries regarding customer identity and basic data from the Ministry of Interior's Civil Registry shall be conducted by following these steps:

   • Access the Credit Information Systems link.
   • Enter username and password.
   • Click the Ministry of Interior inquiry icon.
   • Click Ministry of Interior data inquiry.
   • Enter the personal ID number of the transaction subject and their full name.
   • Click Execute Ministry of Interior inquiry to process the request.

3. Customers must sign an authorization empowering the bank to inquire about their identity and basic data on the Civil Registry.

4. The Civil Registry inquiry response must be retained within the customer file, the application for financial and banking services, or the daily work folders for executing financial transactions.

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Third: Mandatory Inquiry Financial and Banking Services

Banks are required to take measures to inquire about customer identity and basic data from the Civil Registry when performing the following:

1. Opening accounts for customers.

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Fourth: Granting Permissions

Banks shall take the necessary measures for the following:

1. Granting inquiry permissions for customer identity and basic data to employees in the following roles (customer service, tellers, financing and facilities, credit, compliance, and anti-money laundering and counter-terrorist financing).

2. Submitting requests to grant inquiry permissions to employees in the aforementioned roles according to the mechanism implemented on the Palestine Monetary Authority's Credit Information Office systems, in accordance with Circular No. (2008/47) and No. (2016/154).

3. Revoking inquiry permissions for any employee whose services are terminated, resignation is accepted, or who is transferred to a position that does not require such permissions.

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Fifth: Supervision of Inquiry Operations

Each bank is fully responsible for supervising the inquiry operations conducted by its employees on the Civil Registry to ensure the confidentiality of customer and citizen data, and to prevent misuse of permissions for unauthorized purposes, by utilizing the report provided for this purpose titled "Bank Executed Inquiries Follow-up Report".

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Sixth: Reporting to the Anti-Money Laundering and Counter-Terrorist Financing Department

Bank management is required to report in writing and immediately to the Anti-Money Laundering and Counter-Terrorist Financing Department at the Palestine Monetary Authority via the department's official email AML-CFT@PMA.PS upon becoming aware of any of the following:

1. Any misuse by employees of granted permissions, along with administrative and disciplinary measures taken or to be taken regarding the matter.

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Seventh: Inquiry Fees

1. A fee of three shekels per inquiry transaction shall be charged to banks.

2. The Palestine Monetary Authority shall collect inquiry fees from banks by deducting them from the bank's current account held at the Authority, and then transfer the monthly inquiry amounts to the Ministry of Finance within a maximum period of the first week of the following month, after reconciling statements and records.

3. Banks are granted a trial period with a fee of one shekel per inquiry transaction as an exception, valid for one year from the agreement signing date until June 30, 2022.

4. Banks are prohibited from passing any direct or indirect fees, commissions, or additional charges to customers resulting from Civil Registry inquiry transactions.

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Supervision Department
Palestine Monetary Authority

Copy: To the Honorable Ministry of Interior

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Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 Gaza - Palestine P.O. Box 4026 Fax: +970 8 2844487 | Tel: +970 8 2825713 www.pma.ps