Regulatory Alerts2021-01-01
Instruction No. 6 of 2021 Regarding the Regulation of Payment Service Companies' Business
The Palestine Monetary Authority issued Instruction No. 6 of 2021 to securely and transparently regulate the business operations of licensed payment service companies in Palestine. The directive explicitly prohibits providers from dealing in virtual currencies, offering credit facilities, engaging in forex or securities trading, and owning real estate, while mandating a 5% cash collateral deposit and strict interoperability with national payment systems. Furthermore, it enforces comprehensive cybersecurity, governance, access control, monitoring, and business continuity standards, requiring providers to maintain robust encryption, multi-factor authentication, audit trails, and disaster recovery protocols to safeguard user data and ensure operational resilience.