Regulatory Alerts2017-01-01
Circular No. 268: Foreign Companies Holding Accounts with Banks in Palestine for Collecting Financial Receivables
The Palestine Monetary Authority issued Circular No. 268 to restrict banking activities for foreign companies holding accounts in Palestine solely for collecting receivables from goods or services supplied to the territory. The directive mandates that all transactions must be accompanied by matching official documentation, such as invoices, and strictly prohibits using these accounts for any other financial activities, credit facilities, or indirect credit services. Additionally, banks are required to continuously update company records and submit properly authenticated Arabic documents whenever there are changes to the company's objectives, operations, personnel, or ownership.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2017/268)
To all banks operating in Palestine
Date: Thursday, December 28, 2017
Subject: Foreign Companies Holding Accounts with Banks Operating in Palestine for the Purpose of Collecting Financial Receivables
Further to Circular No. (2017/148) dated 2017/07/17 regarding dealings with foreign companies, we refer to companies that hold accounts with banks operating in Palestine for the purpose of collecting their financial receivables in Palestine resulting from the supply of goods/services to Palestine. Accordingly, dealings with the accounts of the aforementioned companies must be restricted within the following exceptions and requirements:
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Financial and banking activities are restricted to receiving financial transactions in exchange for goods/services supplied to Palestine and for the purpose of disposing of the amounts of those transactions. The use of these accounts for any other purpose is strictly prohibited.
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Approval for the execution of financial transactions is conditional upon attaching all official documents (e.g., official invoices) matching the values of those funds and checks.
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The use of these accounts to receive funds or checks related to any activity other than the supply of goods/services to Palestine is strictly prohibited.
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Updating the data of these companies is required continuously, and upon any change or modification to the company regarding its purposes, objectives, operations, employees, signatories, and owners, the relevant documents must be completed. These documents must be in Arabic, notarized, and duly authenticated.
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Granting these companies any credit facilities or any type of credit services, whether direct or indirect, is strictly prohibited.
Supervision and Inspection Department
Palestine Monetary Authority
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2415310 | Mfax: +970 2 2415310
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Mfax: +970 8 2844487
Email: info@pma.ps