Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (110/2016)
To all banks operating in Palestine
Date: Monday, 20 June 2016

Subject: Amendment of Decision-Law No. (20) of 2015 on Combating Money Laundering and Terrorist Financing

With reference to the above subject, and in light of the issuance of Decision-Law No. of 2016 dated 2016/06/09 regarding the amendment of Decision-Law No. (20) of 2015 on Combating Money Laundering and Terrorist Financing, please review the attached decision and take the necessary legal measures to comply with and act accordingly.

Supervision and Inspection Department
Palestine Monetary Authority

• Attachment: Amendment Decision for 2016.

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Presidency

The President
True Copy

State of Palestine
Presidency
12-06-2016
Issued: 1377

Decision-Law No. ( ) of 2016

Concerning the Amendment of Decision-Law on Combating Money Laundering and Terrorist Financing No. (20) of 2015

President of the State of Palestine
Chairman of the Executive Committee of the Palestine Liberation Organization

Having reviewed the provisions of the Amended Basic Law of 2003 and its amendments, particularly Article (43) thereof, And having reviewed the provisions of Decision-Law on Combating Money Laundering and Terrorist Financing No. (20) of 2015, And based on the powers delegated to us, And in pursuit of the public interest, And in the name of the Palestinian Arab people,

We have issued the following Decision-Law:

Article (1)

Reference to Decision-Law on Combating Money Laundering and Terrorist Financing No. (20) of 2015 shall be made for the purposes of this amendment as the original law.

Article (2)

The text of Article (2) of the original law is amended to read as follows:

1. A person commits the crime of money laundering who performs any of the following acts:
   a. Exchanging, transferring, or moving funds by any person, knowing that such funds constitute proceeds of crime, for the purpose of concealing or disguising the illicit origin of such funds, or to assist any person involved in the commission of the predicate offense to evade the legal consequences of their actions. b. Concealing or disguising the true nature, source, location, disposition, movement, ownership, or rights relating to funds by any person who knows that such funds constitute proceeds of crime.
   c. Acquiring, possessing, or using funds by any person who knows at the time of receipt that such funds are proceeds of crime, for the purpose of concealing or disguising the illicit origin of such funds.
   d. Participating in, associating with, attempting, aiding, abetting, facilitating, conspiring, covering up, or attempting to commit any of the acts stipulated in this Article.

2. Knowledge, intent, or purpose shall be inferred as essential elements of the crime from the objective and factual circumstances, in order to prove the hidden source of the proceeds, without requiring a conviction for the predicate offense.

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State of Palestine

Presidency
12-06-2016
Issued: 1377

3. The crime of money laundering of proceeds from any predicate offense shall apply regardless of whether the offense was committed within or outside the State of Palestine, provided that the act is criminalized under the law in force in the country where the offense occurred. Furthermore, the crime of money laundering applies to persons who committed any of those offenses.

4. A person commits the crime of terrorist financing who intentionally or recklessly, by any means, directly or indirectly, provides or collects funds from a lawful or unlawful source, with the intent to use them or knowing that they will be used, wholly or partly, for the benefit of a terrorist, a terrorist organization, or a terrorist group, or in the commission of any terrorist act.

5. Any of the acts stipulated in paragraph (4) of this Article shall constitute the crime of terrorist financing, even if the terrorist act has not been committed or the funds have not actually been used to carry out or attempt to carry it out, or if the funds are not linked to a specific terrorist act, regardless of the country where the terrorist act was attempted.

6. No person shall commit any of the following acts:
   a. Recruiting, organizing, transporting, supplying, or equipping foreign terrorist fighters, or financing or supporting their activities. b. Traveling or attempting to travel from Palestine to any country outside Palestine for the purpose of committing, planning, participating in, or preparing for terrorist acts, or receiving or providing training for terrorist acts.
   c. Providing or collecting funds with the intent or knowledge that they will be used to finance the travel or movement of foreign terrorist fighters, or to organize or facilitate their travel.
   d. Entering or transiting through the State of Palestine for purposes related to terrorist acts.

Article (3)

The text of Article (3) of the original law is amended to read as follows:
Illicit property subject to the crime of money laundering shall include any property derived from any of the following crimes:

1. Participation in a criminal group and an organized fraud group.
2. Human trafficking and smuggling of migrants.
3. Sexual exploitation of children and women.
4. Illicit trafficking in narcotic drugs and psychotropic substances.
5. Illicit trafficking in arms and ammunition.
6. Illicit trafficking in stolen goods and other goods.
7. Bribery and embezzlement.
8. Fraud.
9. Counterfeiting and forgery of currency.
10. Counterfeiting, forgery, and piracy of products or goods.

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State of Palestine

Presidency
12-06-2016
Issued: 1377

11. Crimes violating the provisions of the Environmental Law.
12. Murder or grievous bodily harm.
13. Kidnapping, hostage-taking, or unlawful detention.
14. Robbery and theft.
15. Smuggling.
16. Extortion, threats, or intimidation.
17. Forgery.
18. Piracy against maritime and air navigation.
19. Crimes stipulated in Articles (87, 88, 89, 99) of the current Securities Law.
20. Corruption crimes.
21. Tax crimes.
22. Illegal sale or transfer of land under current Palestinian legislation, including intermediation or any other act aimed at illegally transferring ownership or appropriating part of the land to a foreign state.
23. Credit abuse.
24. Crimes stipulated in the Palestinian Antiquities Law.
25. Terrorist financing and terrorist acts.
26. Cyber piracy of all kinds.

Article (4)

The text of Article (35) of the original law is amended to read as follows:

1. Any person entering or exiting Palestine is obligated to declare any funds, bearer negotiable instruments, electronic money, gemstones, or precious metals in their possession whose value equals or exceeds the threshold determined by the Committee pursuant to instructions issued for this purpose. Customs authorities may request additional information from the person regarding the source of the funds, bearer negotiable instruments, electronic money, gemstones, or precious metals, and the purpose of their use or transfer. They shall record the declaration data in the database and provide it to the unit.

2. The provisions of paragraph (1) of this Article shall apply to the transfer of funds, bearer negotiable instruments, electronic money, gemstones, or precious metals into Palestine through a person, postal service, shipping service, or any other means.

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State of Palestine

Presidency
12-06-2016
Issued: 1377

Article (5)

The text of Article (36) of the original law is amended to read as follows:

1. The Customs Department shall undertake the following:
   Seize or detain part or all of the funds, bearer negotiable instruments, electronic money, gemstones, or precious metals in the person's possession upon declaration, false declaration, or failure to declare, if it is determined that they involve money laundering or terrorist financing crimes. It shall enable the unit to access any information it requests.

2. Powers of the Anti-Smuggling Crimes Inspectorate and its detection.

Article (6)

All provisions conflicting with the provisions of this Decision-Law are repealed.

Article (7)

This Decision-Law shall be submitted to the Legislative Council at its first session for approval.

Article (8)

All competent authorities shall, each within their respective jurisdiction, implement the provisions of this Decision-Law. It shall take effect from the date of its issuance and be published in the Official Gazette.

Issued in the city of Ramallah on: 9/06/2016

Mahmoud Abbas
President of the State of Palestine
Chairman of the Executive Committee of the Palestine Liberation Organization