Regulatory Alerts2013-01-01
Circular No. 95: Special Bank Stamps
The Palestine Monetary Authority issued Circular No. 95 to permit insurance companies to use electronic stamps for vehicle insurance policies, contingent upon banks implementing robust supervisory controls to mitigate operational risks. The directive mandates that all agreements with insurers must secure prior regulatory approval, define stamp usage limits, assign legal liability for misuse or loss, enforce daily cash reconciliation, and designate Palestinian courts for dispute resolution. Additionally, the electronic stamps must meet strict technical specifications—including mechanical operation, cash-receipt indicators, timestamps, electronic amount display, policy number codes, serial numbering, and distinct bank branding—while allowing banks to charge a maximum commission of 2 NIS per stamped policy.
Palestine Monetary Authority
Palestine Monetary Authority
Circular No. (2013/95) To all banks operating in Palestine Date: Tuesday, August 06, 2013
Subject: Special Bank Stamps
Further to our Circular No. (2013/89) dated 2013/07/09 regarding banks not providing any external parties they deal with, including insurance companies, with any stamps bearing the bank's name or logo for use in these companies' offices, and to save time and effort for citizens in processing vehicle insurance transactions, the Palestine Monetary Authority is willing to consider approving banks' requests to allow insurance companies to use electronic stamps solely for stamping vehicle insurance documents. This is conditional upon banks providing effective supervisory procedures to monitor the use of such stamps to prevent their use in a manner that may pose a risk to the bank; compliance with the following minimum requirements is mandatory:
1. The bank must obtain our prior approval when signing or renewing agreements with insurance companies. Such agreements must include, at a minimum, the following clauses:
a. Specify the number of stamps, their locations at the insurance company, and the company employees authorized to use them. They shall not be used or transferred to any other persons/agents. The insurance company shall bear legal responsibility for any use not for the purpose for which the stamps were issued, or in case of theft or loss.
b. The insurance company must commit to depositing the full amount collected upon stamping the policy in favor of the bank on a daily basis. The insurance company shall issue daily reports detailing the value of policies stamped and send copies thereof to the bank along with the deposited cash amounts for reconciliation.
c. Palestinian courts shall have jurisdiction in case of any disputes regarding the interpretation or application of any clause of the agreement.
d. The responsibility for canceling or renewing the agreement's validity period shall be specified, with the bank retaining the right to terminate or unilaterally rescind the agreement.
2. The necessity of specifying the electronic stamp's specifications within the signed agreement, such that these stamps meet, at a minimum, the following specifications:
a. The stamp must be mechanical (policy stamping machines).
b. These stamps must bear a logo indicating that the amount has been received in cash.
c. The time and date of stamping must be displayed.
d. The actual paid amount must be displayed electronically.
e. Use a confirmation code containing the insurance policy number.
f. The stamps must bear serial numbers.
g. The bank's name must appear prominently and clearly on the stamp, and it must be specifically designed and designated for this purpose, distinct from the nature of stamps used in other bank operations.
3. The bank may charge a commission for stamping vehicle insurance policies, capped at a maximum of 2 NIS only.
Supervision and Inspection Department Palestine Monetary Authority
Ramallah - Al Bireh P.O.Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps
Ramallah - Al Bireh P.O.Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487