Regulatory Alerts2020-01-01
Circular No. 203 (2020) - Measures to be Taken Regarding Persons Prohibited from Dealing
The Palestine Monetary Authority issued Circular No. 203 (2020) mandating all exchange companies operating in Palestine to immediately implement strict controls prohibiting transactions with individuals suspected of fraud, extortion, or other predicate money laundering offenses. The directive requires firms to disseminate prohibited person lists to staff, integrate them into automated accounting system alerts, verify all domestic and international transfers against local and international sanctions lists, and enhance employee due diligence training. Additionally, companies must fulfill mandatory reporting obligations under Decision-Law No. 20 of 2015 and notify the Authority in writing of any related operational incidents via the designated AML-CFT email.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2020/203)
To all exchange companies operating in Palestine
Date: Thursday, October 22, 2020
Subject: Measures to be Taken Regarding Persons Prohibited from Dealing
In the Palestine Monetary Authority's commitment to mitigating the risks of money laundering and terrorist financing, and in follow-up to circulars issued regarding criminal methodologies and circulars mandating blocking, cautionary, and precautionary measures to refrain from dealing with certain persons suspected of committing criminal methods (fraud, extortion) that fall under the predicate offenses of money laundering as stipulated in Article (3) of Decision-Law No. (20) of 2015 concerning the combating of money laundering and terrorist financing and its amendments, we reiterate the necessity of taking immediate measures and controls to ensure non-dealing with these persons and/or executing financial transactions on their behalf, including:
- Disseminate the names of persons prohibited from dealing to company employees.
- Input the data of persons prohibited from dealing into the company's internal blocking and freezing lists configured on the accounting system immediately upon receipt, and work to configure the accounting system to issue automated alerts that prevent the completion of any future financial transactions on behalf of these persons.
- Refrain from executing domestic, international, and rapid financial transfers before registering the transfers on the accounting system and automatically querying the names of customers and beneficiaries of those transfers against the company's internal blocking lists and the effective local and international blocking and freezing lists in the State of Palestine.
- Enhance and strengthen employee capabilities in applying due diligence procedures to identify the financial relationship and purpose of financial transfers, and take the measures stipulated under Circular (2020/157); including raising awareness among employees and customers regarding the risks of criminal methodologies, and working to disseminate information about these methodologies at company premises and through the exchange company's social media channels.
- Fulfill the reporting obligations stipulated under the provisions of Decision-Law No. (20) of 2015 concerning the combating of money laundering and terrorist financing and the instructions issued pursuant thereto.
- Notify the Palestine Monetary Authority in writing of operational events related to those crimes, via the approved email address of the Anti-Money Laundering and Combating the Financing of Terrorism Department: AML-CFT@pma.ps
Supervision Group
Palestine Monetary Authority
Note:
Page 2 contains the signature of the Supervision Group and the name of the Palestine Monetary Authority, with contact information at the bottom of the page.
Contact Information:
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 P.O. Box Palestine - Ramallah & Al-Bireh Governorate
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Gaza - Palestine P.O. Box 4026 P.O. Box Palestine - Gaza
www.pma.ps