Regulatory Alerts2022-01-01
Lending 2022 Circular No. 299 Prudence and Caution
The Palestine Monetary Authority issued Circular No. 299/2022 requiring all specialized lending institutions in Palestine to exercise strict prudence and caution against third-party brokers soliciting clients for loan facilitation in exchange for unauthorized fees. The directive mandates institutions to implement internal controls, publicly educate clients via social media to avoid broker commissions, and establish electronic safeguards to prevent business relationships with such intermediaries. Furthermore, lenders must promptly report any discovered brokerage violations to the Authority’s Anti-Money Laundering and Combating the Financing of Terrorism Department and disclose the disciplinary actions taken against complicit staff.
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