Regulatory Alerts2026-01-01
Decision No. 1 of 2026 on High-Risk and Increased Monitoring Countries
The Palestine Monetary Authority’s Financial Follow-Up Unit issued Decision No. 1 of 2026 to formally adopt and update the Financial Action Task Force (FATF) lists of high-risk countries and jurisdictions under increased monitoring for implementation across all Palestinian financial institutions and specified non-financial businesses and professions. The decision mandates a risk-based approach requiring enhanced due diligence, targeted financial sanctions, restricted correspondent banking, and confidential reporting for blacklisted nations like North Korea and Myanmar, while expanding the grey list to include Kuwait and Papua New Guinea alongside twenty other jurisdictions. Financial entities must conduct updated self-assessments of AML/CFT risks, implement country-specific action plans to address strategic deficiencies, and comply with these measures effective from the circular’s issuance date.