Regulatory Alerts2016-01-01
Instructions No. 3 of 2016 Concerning the Licensing of Specialized Lending Institutions in Palestine
The Palestine Monetary Authority issued Instructions No. 3 of 2016 to regulate the licensing, operational scope, and compliance requirements for specialized lending institutions in Palestine. The directive establishes strict capital thresholds ranging from USD 5 million to USD 10 million depending on corporate structure, mandates a comprehensive application process with a 30-day review window, and explicitly permits lending and Sharia-compliant financing while prohibiting traditional banking, securities trading, and real estate speculation. It further outlines mandatory internal controls, statutory auditing, cash deposits, and fixed annual fees, granting licenses indefinitely upon final approval and requiring operations to commence within 60 days.