Region

Jurisdiction

Regulator

2014-01-01

Instructions No. (09) of 2014 Concerning the Management of Deceased Accounts

The Palestine Monetary Authority issued Instructions No. (09) of 2014 mandating banks to implement standardized procedures for managing deceased customer accounts, including immediate account holds, suspension of cards and electronic services, and dual-control oversight. The directive requires banks to inventory and secure balances, continue accruing interest per contract, and distribute inheritance shares only after legal department approval and internal audit verification. If unclaimed balances remain unsettled for three consecutive years, they must be transferred to a suspense account, publicly advertised with regulatory approval, and ultimately remitted to the Authority if still unclaimed.

Palestine

Palestine Monetary Authority

Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (09) of 2014

Concerning the Management of Deceased Accounts

Pursuant to the provisions of Decision-Law No. (9) of 2010 Concerning Banks, particularly Articles (43) and (72) thereof, and in the public interest, we have issued the following Instructions:

Article (1)

Definitions

The following words and phrases shall have the meanings specified below unless the context indicates otherwise:

Deceased Accounts: Any credit or debit accounts or safe deposit boxes belonging to a deceased bank customer.

Article (2)

Scope of Application

The provisions of these Instructions shall apply to all deceased accounts held at banks.

Article (3)

Procedures for Handling Deceased Accounts

The bank must continuously update customer data and monitor daily newspapers, various media outlets, and any tools or systems provided by the Palestine Monetary Authority to identify cases of customer death.
The bank must establish standard operating procedures for handling deceased accounts to ensure dual control and mitigate any risks associated with these accounts.
The operating procedures specified in paragraph (2) of this Article shall include the following:

At a minimum:

a. Placing a hold on the deceased customer's account in the banking system upon notification of death.

b. Inventorying and securing all deceased account balances, including any safe deposit boxes in the deceased's name, and having the Legal Department review heirs' documents according to the inheritance inventory certificate.

c. Suspending ATM cards, credit cards, standing orders, and electronic services.

d. Revoking account signatures for all users except the Branch Manager and one other employee to ensure dual control.

e. Separating deceased account files from other accounts and maintaining dedicated files for these accounts containing all documents and records supporting balance accuracy, placed under the direct supervision of the Branch Manager and subject to dual control.

f. Continuing to accrue interest or returns on deceased deposit balances in all forms, in accordance with the terms of the contract agreed upon between the bank and the customer.

g. Distributing shares to heirs according to their respective inheritance portions.

h. Obtaining approval from the Legal Department or Legal Counsel for the distribution of shares to heirs.

i. Preparing periodic reports and follow-up results on these accounts.

j. Subjecting these accounts to internal audit programs at least once a year and reporting to the bank's Audit and Review Committee.

k. Generating automated reports or statements for deceased accounts and subjecting them to periodic audit and review.

l. If one year passes without settling the deceased's balances and distributing them to heirs, the deceased's system access shall be permanently revoked across all branches and offices, and oversight of these accounts shall be centralized at the bank's General or Regional Administration.

m. If one year passes from the date of transferring accounts to General Administration oversight without claims by heirs, deceased account balances shall be transferred to a suspense account titled "Unclaimed Balances".

n. After one year from their transfer to unclaimed balances, these accounts shall be advertised in daily newspapers after obtaining the Palestine Monetary Authority's approval to request heirs to visit the bank and its branches.

o. If one year passes without any person or entity claiming these account balances after newspaper advertisement, those balances shall be transferred to the Palestine Monetary Authority accompanied by a detailed statement of all information. If heirs visit the bank after the balances have been transferred to the Authority, the bank shall follow up with the Authority regarding the matter.

Article (4)

Implementation, Publication, and Repeal of Conflicting Provisions

All relevant authorities shall implement the provisions of these Instructions within their respective jurisdictions. These Instructions shall take effect from the date of their issuance, and any provisions conflicting with them are hereby repealed.

Issued in the city of Ramallah on this day, Wednesday, 10 September 2014

Supervision and Inspection Department
Palestine Monetary Authority