Regulatory Alerts2022-01-01
Circular No. 298/2022: Prudence and Caution
The Palestine Monetary Authority issued Circular No. 298/2022 requiring all Palestinian banks to implement strict internal controls and compliance measures to combat illegal loan brokerage practices where third parties charge borrowers unauthorized fees for facilitating financing approvals. The directive mandates that banks proactively educate clients via social media and official digital channels to avoid paying such commissions, while simultaneously establishing electronic safeguards to prevent any business relationships with these brokers. Banks are further required to immediately report any discovered brokerage violations or related misconduct to the Authority’s Anti-Money Laundering and Combating the Financing of Terrorism Department through the designated official email address.