Regulatory Alerts2017-01-01
Instructions No. 2 of 2017 Concerning Bounced Cheques, Settlements, and Suspended and Lost Cheques
The Palestine Monetary Authority issued Instructions No. 2 of 2017 to automate banking operations and mitigate credit and operational risks by standardizing procedures for bounced cheques, amicable settlements, and suspended or lost cheques. The regulations require banks to verify customer data upon account opening, report issued cheque books immediately, classify returns based on five specific grounds, and process settlement requests with a 50-shekel fee per cheque while strictly prohibiting additional bank commissions. Additionally, the instructions establish a 20-shekel monthly administrative fee for approved settlements, impose a 100-shekel penalty for data extraction errors, repeal prior conflicting directives, and take effect on February 5, 2017.