Regulatory Alerts2025-01-01
Circular No. 16 High-Risk Countries and Countries Under Enhanced Follow-Up
The Palestine Monetary Authority and the Financial Follow-Up Unit issued Circular No. 16/2025 and Decision No. (2025/2) to enforce updated lists of high-risk (black list) and enhanced follow-up (grey list) countries in alignment with FATF standards. Financial institutions and designated non-financial businesses and professions must apply targeted financial sanctions, enhanced due diligence, and strict correspondent banking restrictions for black-listed nations, while integrating grey-listed countries' AML/CFT deficiencies into their risk self-assessments. The directive mandates immediate implementation, requires reporting mechanisms to flag suspicious transactions, and provides detailed guidance on accessing FATF mutual evaluation reports and monitoring national action plans to address strategic regulatory gaps.