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2022-01-01

Circular No. 62/2022 Combating Counterfeiting and Forgery Crimes

The Palestine Monetary Authority issued Circular No. 62/2022 to mandate money changers in Palestine implement strict preventive and legal measures against currency counterfeiting and check forgery. The directive requires staff to utilize UV inspection devices, verify banknote authenticity with compliant counting machines, and recognize specific tampering indicators such as ink mottling, erased security lines, and VOID mark distortion. Furthermore, it prohibits returning or destroying suspected fraudulent instruments, mandates halting transactions for clients with obscured identities or suspicious behavior, and compels immediate reporting to General Security, the Public Prosecution, and the Financial Monitoring Unit via GoAML.

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Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

Circular No. (62/2022) To All Money Changers Operating in Palestine Date: Wednesday, July 27, 2022

Subject: Combating Counterfeiting and Forgery Crimes

In the Palestine Monetary Authority's commitment to combating counterfeiting and forgery crimes, and to mitigate the risks of money laundering, terrorist financing, and any potential risks, we emphasize the necessity of adhering to preventive measures and procedures when executing customers' financial transactions:

First: Counterfeiting and Forgery of Currency.

  1. Verify the integrity and authenticity of banknotes using machines capable of counting and inspecting security features on currency in accordance with the requirements of Circular (125/2022).
  2. Alert and train staff that some individuals circulate banknotes bearing the same serial number as another banknote, as these are forged and printed using scanner technology.

Second: Forgery of Checks with Security and Technical Specifications.

  1. Provide devices capable of inspecting the security and technical features on purchased check paper using ultraviolet (UV) light.
  2. Train staff on the security levels used in printing checks with security and technical specifications, and alert them to indicators suggesting forgery attempts involving manipulation and erasure (manual, acid-based, or chemical) on the surface of the check paper, as well as attempts to remove basic editable content elements. These indicators are as follows:
  • Reaction of inks on the check paper surface due to manipulation and erasure, resulting in mottling (spots/black dots) across various areas of the check, color changes, and the check turning pale.

1 www.pma.ps Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452 | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825713 | Fax: +970 8 2844487

[Palestine Monetary Authority Logo]

Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

  • Disappearance of lines in editable check elements (payee name, amount in numbers and words, signature, date), causing the background of those elements to turn white.
  • Failure of hairline glows, shapes, geometric patterns, and secret inks to appear when the check paper surface is exposed to UV light.
  • Distortion and failure of the VOID mark to appear when photographing the check paper due to chemical reactions.

Third: Preventive and Legal Measures.

  1. Money changers and their staff are prohibited from returning suspected counterfeit or forged currency and checks to customers, or even destroying them by punching, scratching, or writing on them.
  2. Educate customers on how to identify and detect security features in currency circulating in the State of Palestine, and work to distribute awareness brochures at branches and via the money changer's social media channels.
  3. Do not execute any financial transactions for customers in the following cases:
  • Doubt or suspicion regarding the integrity of the customer's identification document.
  • Doubt or suspicion of concealment and/or masking of facial and physical features, which affects camera recordings and the integrity of natural person identity verification procedures. Examples include: wearing sunglasses and hats, etc.
  • Suspicion of abnormal behavior and conduct by clients inside money changer branches, such as: signs of apprehension and fear, excessive tension and nervousness, constant preoccupation with mobile phones, etc.
  1. Exercise zero tolerance in taking the necessary legal measures to combat these crimes, which includes:
  • Reporting to the General Security Directorate and handing over the original suspected counterfeit or forged currency.
  • Reporting to the Public Prosecution and handing over the original suspected counterfeit or forged checks.
  • Reporting to the Financial Monitoring Unit via the GoAML program.
  1. Notify the Anti-Money Laundering and Combating the Financing of Terrorism Department at the Palestine Monetary Authority in writing of the legal measures taken, via the department's official email: AML-CFT@PMA.PS

Supervision Group Palestine Monetary Authority

2 www.pma.ps Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452 | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825713 | Fax: +970 8 2844487

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