Regulatory Alerts2017-01-01
Instructions No. (2) of 2017 Concerning Returned Cheques, Settlements, Stopped and Lost Cheques
The Palestine Monetary Authority issued Instructions No. (2) of 2017 to automate banking operations and mitigate credit and operational risks by establishing standardized systems for returned cheques, amicable settlements, and stopped or lost cheques. The regulations mandate banks to verify customer data, report cheque books upon issuance, adhere to specific return reasons for classification, and enforce a fee structure of 50 shekels per returned cheque for settlement requests, while prohibiting additional bank charges. Furthermore, the instructions repeal previous directives and circulars, require immediate reporting of stopped or lost cheques, and mandate customer authorization forms for all system inquiries, with enforcement effective from February 5, 2017.