Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (1) of 2017

Regarding Financial and Banking Products, Advertising, and Prize Campaigns

Based on the provisions of Law Decree No. (09) of 2010 regarding Banks, particularly Article (72) thereof, and based on the provisions of Decision No. (132) of 2011 regarding the Licensing and Supervision of Specialized Lending Institutions, particularly Articles (3) and (35) thereof, and in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:

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Article (1)

Definitions

The words and phrases appearing in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

Service Provider:

The Bank or Islamic Bank or Specialized Lending Institution or any other entity subject to the supervision of the Palestine Monetary Authority licensed to provide financial and banking services.

Financial and Banking Product and Service:

The new product and service that have been utilized by the Service Provider, and do not include new ancillary programs related to existing products or services of the Service Provider.

Read Advertisement:

The advertisement published through newspapers, magazines, websites, or social media sites.

Partial Read Advertisement:

The advertisement published through an advertising brochure or flyer.

Short Read Advertisement:

The advertisement published through a billboard or web banner.

Audio Advertisement:

The unwritten advertisement published through radio stations, websites, or via telephone or any other similar method.

Visual Advertisement:

The advertisement published through television stations, websites, display screens, or ATM screens at branches of the Service Provider or by any other similar method.

Website:

The website belonging to the Service Provider or any other website through which the Service Provider advertises.

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Article (2)

Objective

These Instructions aim to consolidate the principles of transparency and comprehensive disclosure between the Service Provider and its clients, thereby enhancing the protection of the rights of financial and banking service consumers.

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Article (3)

Scope of Application

The provisions of these Instructions shall apply to:

1. Any new financial and banking product or service.
2. The advertising campaign for existing and new financial and banking products and services.
3. The advertising campaign regarding cooperation agreements between the Service Provider and other entities.
4. Prize campaigns, whether cash, in-kind, real estate, or service-based, and the advertising campaign related thereto.

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Article (4)

New Financial and Banking Products and Services

The Service Provider must obtain prior approval from the Palestine Monetary Authority before launching any new financial or banking product or service.

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Article (5)

General Provisions

The Service Provider must comply with the following:

1. Prepare work procedures, form a committee, and establish a prize draw program, and obtain approval from the executive management.
2. Deliver the prize to the winner in the same currency, type, and specifications as advertised, and document this in writing.

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Article (6)

Conditions for Read and Partial Read Advertisements for Financial and Banking Products and Services

The following conditions must be met at a minimum when the Service Provider advertises a financial or banking product or service through a Read or Partial Read Advertisement:

1. The name of the product or service and the basic terms and conditions for obtaining the product or service.
2. Attributes and features of the product or service.
3. Customer rights and obligations.
4. Features of the accompanying campaign for the product or service and its start and end dates (if the start date differs from the launch date).
5. Methods for inquiring about information and additional details regarding the product or service.
6. Identification of the target audience for the advertisement, if a specific group is targeted.

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Article (7)

Conditions for Short Read Advertisements for Financial and Banking Products and Services

The conditions set forth in Article (6) of these Instructions must be met when the Service Provider advertises a financial or banking product or service through a Short Read Advertisement, with disclosure of at least the following:

1. The name of the product or service.
2. The name of the Service Provider and methods for obtaining further information.

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Article (8)

Conditions for Audio and Visual Advertisements for Financial and Banking Products and Services

The conditions set forth in Article (6) of these Instructions must be met when the Service Provider advertises a financial or banking product or service through an Audio or Visual Advertisement, with disclosure of at least the following:

1. The basic terms and conditions for obtaining the product or service.
2. Features of the accompanying campaign for the product or service and its start and end dates (if the start date differs from the launch date).
3. The name of the Service Provider and methods for obtaining further information regarding the product or service.
4. The target audience for the product or service, if a specific group is targeted.

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Article (9)

Conditions for Read and Partial Read Advertisements for Launching a Prize Campaign

The following conditions must be met at a minimum when the Service Provider launches a prize campaign through Read and Partial Read Advertisements:

1. Detailed amounts and values of in-kind and cash prizes.
2. The draw date for each prize.
3. The start date of the campaign (if the start date differs from the launch date), and its end or renewal date.
4. The target audience of the campaign, if a specific group is targeted.
5. Whether participating savings accounts are subject to interest/profit.

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Article (10)

Conditions for Short Read Advertisements for Launching a Prize Campaign

The conditions set forth in Article (9) of these Instructions must be met when the Service Provider launches a prize campaign through a Short Read Advertisement, with disclosure of at least the following:

1. The name of the prize campaign.
2. The name of the Service Provider and methods for obtaining further information.

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Article (11)

Conditions for Audio and Visual Advertisements for Launching a Prize Campaign

The conditions set forth in Article (9) of these Instructions must be met when the Service Provider launches a prize campaign through Audio and Visual Advertisements, which must include the following:

1. Conditions for entering the prize draw, such as the minimum savings account balance and account age required to enter the draw.
2. Amounts and values of in-kind and cash prizes.
3. Draw dates for the campaign prizes.
4. The name of the Service Provider and methods for obtaining further information regarding the campaign.
5. The end date of the campaign or its renewal date.

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Article (12)

Misleading Representation

The Service Provider is prohibited from doing the following when advertising any banking product, service, or prize campaign:

1. Using phrases such as "competitive commissions," "competitive interest," "reduced interest," or similar, unless the commission or interest value is specified, or using the phrase "easy and simplified procedures" unless the procedures are stated strictly.

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Article (13)

Penalties and Fines

1. Anyone who violates the provisions of these Instructions shall be punished with a fine not less than five thousand US dollars (5,000) and not exceeding fifteen thousand US dollars (15,000).
2. The Palestine Monetary Authority may request the Service Provider to stop the advertisement or prize campaign if it violates the requirements of these Instructions or violates the terms and conditions of the product, service, or prize campaign.

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Article (14)

Repeal

1. Circular No. (2011/96) issued by the Palestine Monetary Authority on 31/05/2011 regarding obtaining prior approval from the Palestine Monetary Authority for launching new programs and prize campaigns is repealed.
2. Circular No. (2012/101) issued by the Palestine Monetary Authority on 12/07/2012 regarding obtaining prior approval from the Palestine Monetary Authority before promoting any new or existing Egyptian service or product is repealed.
3. Anything inconsistent with the provisions of these Instructions is repealed.

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Article (15)

Implementation and Enactment

All competent authorities shall implement the provisions of these Instructions within their respective jurisdictions. The provisions of these Instructions shall apply as of 15/01/2017.

Issued in Ramallah on 08/01/2017 CE, Corresponding to: 10 Rabi' al-Thani 1438 AH

[Signature] Market Planning Department Palestine Monetary Authority

Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | +970 2 2409922: Fax | +970 2 2415250: Phone | P.O. Box 452 Ramallah - Palestine Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | +970 8 2844487: Fax | +970 8 2825292: Phone | P.O. Box 4026 Gaza - Palestine Email: info@pma.ps | Email: info@pma.ps www.pma.ps