Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (13) of 2021

Regarding the Financial Inclusion Account

Pursuant to the provisions of Decision-Law No. (09) of 2010 regarding Banks, particularly Articles (43) and (72) thereof, and in accordance with the powers delegated to us, and in the public interest, we have issued the following Instructions:

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Article (1)

Definitions

The following words and phrases shall have the meanings specified below, unless the context indicates otherwise:

• Financial Inclusion Account: An Egyptian account through which basic banking services are provided to the target group.
• Target Group: Any natural person with legal capacity holding a Palestinian ID or Jerusalem ID, who does not have an active, dormant, or joint Egyptian account with any bank licensed to operate in Palestine.

Basic Banking Services:

1. Cash deposits and withdrawals.
2. Check deposit for collection.
3. Electronic banking services.
4. Issuance and receipt of domestic and international financial transfers.
5. ATM card.

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Article (2)

Objective and Scope of Application

1. These Instructions aim to enable the target group to access and use basic banking services through the Financial Inclusion Account.
2. The provisions of these Instructions shall apply to all banks licensed to operate in Palestine.

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Article (3)

Financial Inclusion Account

1. The bank shall accept the opening of a Financial Inclusion Account for any person from the target group, subject to compliance with the following:

   • a. Taking all necessary due diligence procedures for customer identification and verification, and screening against approved lists when opening the account and executing transactions in accordance with the bank's risk classification and reporting policy, and applicable laws, regulations, and instructions.
   • b. Designating a specific field for the account on the banking system, so that the account is automatically granted basic banking services.
   • c. Not setting a minimum balance requirement when opening the account.
   • d. Not charging any fees or commissions for opening the account, account management, issuing or using the ATM card, national key fees, SMS services, internet banking, or mobile banking.

2. The Palestine Monetary Authority's prevailing Instructions regarding fees and commissions on financial transfers shall apply.

3. The Palestine Monetary Authority's prevailing Instructions regarding dormant accounts shall apply to the Financial Inclusion Account.

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Article (4)

Financial Ceilings

The financial ceilings for the Financial Inclusion Account shall be as follows:

1. The maximum limit for all credit transactions in the account (cash deposits, checks, and incoming financial transfers) is twelve thousand US dollars annually or its equivalent in other currencies, provided that the value of transactions does not exceed two thousand US dollars (2,000) or its equivalent in other currencies within a single month.

2. In case the value of credit transactions in the account exceeds the maximum limit stated in paragraph (1) of this Article, the bank may:

   • a. Approve the execution of transactions from a higher administrative level, provided that the total annual credit transactions do not exceed twenty thousand US dollars (20) or its equivalent in other currencies.
   • b. Convert the Financial Inclusion Account into a current or savings account after obtaining the customer's consent and completing additional enhancements according to the nature and requirements of the account.

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Article (5)

Banking Awareness

The bank shall provide appropriate banking awareness through all available channels to inform citizens of the existence of the Financial Inclusion Account, the requirements for opening it, its specific provisions and conditions, including financial ceilings and basic banking services provided through it, as well as the measures that will be taken in case of violation of the provisions and conditions.

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Article (6)

Account Closure

The bank may close the Financial Inclusion Account if the customer fails to comply with the account's provisions and conditions, provided that the customer is notified thereof, along with the reasons and justifications for the account closure.

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Article (7)

Rejection of Account Opening

1. In the event the bank refuses to approve the request to open a Financial Inclusion Account for any reason, the bank must notify the customer thereof within a maximum period of (7) seven working days from the date of application, stating the reasons and justifications for the refusal.

2. The bank must provide the Palestine Monetary Authority with a quarterly report within a maximum period of (7) seven working days from the beginning of the following quarter, including rejected accounts and the reasons and justifications for the rejection.

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Article (8)

Rectification of Status

All banks must rectify their legal status in accordance with the provisions of these Instructions within a maximum period of (3) three months from the date of issuance of these Instructions.

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Article (9)

Repeal

1. Instructions No. (6) of 2019 regarding the Financial Inclusion Account are hereby repealed.
2. Any provision conflicting with the provisions of these Instructions is hereby repealed.

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Article (10)

Penalties

Anyone who violates the provisions of these Instructions shall be penalized in accordance with the provisions of Decision-Law No. (9) of 2010 regarding Banks.

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Article (11)

Implementation and Enforcement

All competent authorities shall each implement the provisions of these Instructions within their respective jurisdictions, and these Instructions shall apply from the date of their issuance.

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Issued in Ramallah on 10/06/2021 AD

Dr. Firas Malham
Governor

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Note:
Note Ramallah and Al-Bireh - Palestine P.O. Box 452
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