Regulatory Alerts2017-01-01
Circular No. 269 Instructions for Dealing with Money Changers and Exchange Companies Operating and Licensed in Israel
The Palestine Monetary Authority and the National Committee for Combating Money Laundering and Financing of Terrorism issued Circular No. 269 and Instructions No. (J/2) to classify Israeli-licensed money changers and exchange companies as high-risk entities. The directives strictly prohibit Palestinian banks and financial institutions from conducting direct or indirect financial transactions with these Israeli entities unless they obtain specific regulatory approvals, including foreign company registration, written PMA consent, and supervisory clearance for bank accounts. Financial institutions must fully comply with these restrictions and regularize any pre-existing financial positions by March 30, 2018, under penalty of regulatory enforcement.