Regulatory Alerts2022-01-01
Decision No. (1) of 2022 - High-Risk and Increased Monitoring Jurisdictions
The Palestine Monetary Authority issued Circular No. 2022/63 to enforce the Financial Action Task Force (FATF) list of High-Risk and Increased Monitoring Jurisdictions by requiring payment service providers to integrate grey-list country deficiencies into their AML/CFT self-assessments and apply proportionate, risk-based enhanced due diligence. The directive mandates that compliance measures must not restrict financial access except for legally sanctioned entities, anonymous or shell bank accounts, or cases involving clear money laundering or terrorist financing indicators. Financial institutions are instructed to align their internal controls with FATF standards while maintaining operational continuity for legitimate customers.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2022/63) To all payment service companies operating in Palestine Date: Monday, March 14, 2022
Subject: High-Risk and Increased Monitoring Jurisdictions
Attached is a copy of the decision issued by the Financial Monitoring Unit, No. (2022/1) dated 10/03/2022, concerning High-Risk and Increased Monitoring Jurisdictions in accordance with the list issued by the Financial Action Task Force (FATF).
Accordingly, the necessary legal measures are requested to implement the requirements of the aforementioned decision and the specific measures to be taken, emphasizing the necessity to comply with the following:
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Take into account concerns regarding deficiencies in anti-money laundering and counter-terrorist financing (AML/CFT) systems in countries classified on the "grey list" (Increased Monitoring Jurisdictions), when conducting and updating the self-assessment of AML/CFT risks.
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Apply the Risk-Based Approach (RBA), such that the application of due diligence measures is proportionate to (risk analysis results, the nature of the financial transaction risk, customer risk, and country classification), with enhanced due diligence measures to be applied when high risks are identified.
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The measures taken shall not prevent a specific entity from accessing financial services, except for prohibiting dealings with anonymous persons or those using fictitious or shell names, or persons prohibited from dealing under current legislation, or based on instructions from the Palestine Monetary Authority, or when there are indicators of committing money laundering, terrorist financing, or any predicate offenses.
Supervision Group Palestine Monetary Authority
Copy: To the esteemed / Financial Monitoring Unit
Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Fax | Tel: +970 2 2415251 | Tel Gaza - Palestine P.O. Box 4026 Fax: +970 8 2844487 | Fax | Tel: +970 8 2825713 | Tel