Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (3) of 2021

Regarding Payment Service Companies Providing Electronic Wallet Services

Based on the provisions of Legislative Decree No. (17) of 2012 concerning the National Payment Settlement Law, particularly Articles (5) and (9) thereof,
and based on what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (236) dated 23/06/2021,
and in pursuit of the public interest,
we have issued the following Instructions:

Chapter One

Definitions and Scope of Application

Article (1)

Definitions

The words and phrases contained in these Instructions shall have the meanings specified below, unless the context indicates otherwise:

• Authority: The Palestine Monetary Authority.
• Electronic Wallet: An electronic service that converts cash into digital balances to execute payment, receipt, and transfer of funds.
• Sub-Wallet: An electronic service branching from the Electronic Wallet.
• Electronic Wallet Account: An account opened with the Service Provider.
• Service Provider: The company licensed by the Authority to provide the Electronic Wallet service.
• Payment Order: Instructions from the Payer to the Service Provider requesting the execution of a payment transaction.
• Person: Natural or legal person.
• User: The person who uses the Electronic Wallet as a Payer or Beneficiary.
• Payer: The person issuing the Payment Order through the Service Provider.
• Beneficiary: The person receiving the funds of the Payment Order through the Service Provider.
• Agent: The person entrusted to act on behalf of the Service Provider in providing all or part of the services licensed to the Service Provider, according to their agreement.
• Account Funding: Depositing cash funds into the Electronic Wallet account.

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Article (2)

Objective and Scope of Application

1. These Instructions aim to regulate Electronic Wallet service operations in a secure and transparent manner.
2. The provisions of these Instructions apply to all companies licensed to provide the Electronic Wallet service.

Chapter Two

Electronic Wallet

Article (3)

Account Opening

1. The Service Provider must comply with the following when opening an electronic wallet account for a User:

   • a. Take all due diligence procedures in accordance with applicable laws, regulations, and instructions when opening the account.
   • b. Open the Electronic Wallet account for the User based on a written request.
   • c. Verify the original documents related to account opening and their stamps against the registered data.
   • d. Verify that the name of the account opening applicant is not listed on anti-money laundering and counter-terrorism financing blacklists.
   • e. Not specify an expiration date for the wallet.
   • f. The wallet value must equal the value of cash received from the User, and no interest or returns shall be granted on the existing balance.
   • g. Obtain all information listed in Annex No. (1).

2. Notwithstanding paragraph (1/b) of this Article, the Service Provider may open a temporary electronic wallet account for a period not exceeding (60) sixty days through electronic means and under terms mutually agreed upon in writing by the Authority, and the account shall be cancelled upon expiration of this period unless there is a balance in the wallet account.

3. The temporary electronic wallet is exempt from the requirements stipulated in paragraph (1/d) of this Article, provided that no funds are deposited into the temporary wallet account before fulfilling these requirements.

4. The Service Provider is prohibited from opening an account electronically again for the same person if they do not sign the account opening request in writing within the period stipulated in paragraph (2) of this Article.

5. The User is allowed to open only one account with the same Service Provider.

6. More than one sub-wallet may be opened from the Electronic Wallet account under the following conditions:

   • a. The sub-wallet belongs to a minor related to the User as a first-degree relative.
   • b. The limit and operations of the sub-wallet must fall within the limit and operations of the User's Electronic Wallet account as specified in Annex No. (2) of these Instructions.
   • c. The funding and transfer operations to the sub-wallet are restricted only through the parent Electronic Wallet.

7. The Service Provider may, for marketing purposes, award monetary prizes or rewards to User accounts, provided that prior written approval is obtained from the Authority.

Article (4)

Electronic Wallet System

1. The Service Provider must comply with the following:

   • a. Manage, store, and retrieve electronic records and transactions executed on the wallet.
   • b. Securely link operations provided through the Agent to ensure immediate execution on the User's account.
   • c. Protect and process payment orders issued by the User.

2. The Authority may inspect the system or appoint a third party to do so at the Service Provider's expense to ensure compliance with any conditions and requirements and to verify the integrity of operational processes in accordance with these Instructions.

Article (5)

Financial Guarantees for Electronic Wallets

The Service Provider must provide any of the following guarantees for the full value of issued Electronic Wallets, with the Authority's approval prior to providing the service:

1. Cash deposit with the Authority.
2. Issuance of a bank guarantee from one of the banks licensed to operate in Palestine upon request, in favor of the Authority, automatically renewed.
3. Submission of a bank check issued by one of the banks licensed to operate in Palestine in favor of the Authority.

Article (6)

Funding and Withdrawal

1. The Service Provider must comply with the following:

   • Subject all Electronic Wallet account funding methods to procedures that allow verification of the account owner's identity before accepting any funding or withdrawal transaction, and funding the Electronic Wallet account is prohibited except by the account owner or their authorized representative.

2. Restrict the execution of Electronic Wallet funding or withdrawal operations within Palestine.

3. Ensure sufficient cash liquidity with the Agent to cover anticipated cash withdrawal operations.

Article (7)

Transfers Between Accounts

1. Financial transfer operations between Electronic Wallet service users' accounts among Service Providers licensed to operate in Palestine must be conducted.

2. Financial transfers may be made from the User's Electronic Wallet account to the User's bank account and vice versa, provided that the bank account is opened with a bank licensed by the Authority.

Article (8)

Limits for Payment, Withdrawal, and Transfer Operations

1. The Service Provider must comply with the User account limits determined by the Authority in accordance with Annex No. (2) and subsequent mechanisms of instructions issued by the Authority on this matter.

2. The contractual relationship with the following entities is exempt from paragraph (1) of this Article, such that the relationship is governed by special agreements:

   • a. The Principal Agent account.
   • b. The Merchant account linked to the Electronic Wallet service.
   • c. The E-voucher Issuer account linked to the Electronic Wallet service.
   • d. Any other entity approved by the Authority.

Article (9)

Repeal

1. Instructions No. (1) of 2020 Regarding Payment Service Companies Providing Electronic Wallet Services are hereby repealed.
2. Anything inconsistent with the provisions of these Instructions is hereby repealed.

Article (10)

Implementation and Enforcement

All competent authorities shall implement the provisions of these Instructions according to their respective jurisdictions, and they shall apply from the date of their issuance.

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Issued in Ramallah on 30/06/2021 AD

Dr. Firas Malham
Governor

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Annex No. (1)

Data and Information Required for Account Opening

The following is the minimum data and information required to be available in the Electronic Wallet account opening request form:

1. The following User information:

   • a. National ID number or recognized identity document number for a natural person, or registration certificate for a legal person.
   • b. Full name.
   • c. Place of residence.
   • d. Occupation.
   • e. Copy of the identity document.
   • f. Mobile phone number registered with any licensed telecommunications company in Palestine.
   • g. User's signature on the general terms and conditions for account opening.

2. Conditions and procedures for freezing, reactivating, and closing the account.

3. Declaration from the account opening applicant that they are the original owner and sole beneficiary of the account opening.

4. Annex detailing account limits and permitted transactions through the Electronic Wallet.

Annex No. (2)

Financial Limits

The limits for financial orders related to the User's account in all currencies are as follows:

1. The maximum limit for the User's account at any time is 4,000 US dollars or its equivalent in other circulating currencies.

2. The maximum limit for total payment and transfer operations monthly using the User's account is 4,000 US dollars or its equivalent in other circulating currencies.

3. Funding the User's account and transfers to it is 4,000 US dollars monthly or its equivalent in other circulating currencies.

4. Cash withdrawal from the User's account is 1,000 US dollars monthly or its equivalent in other circulating currencies at a maximum.

5. Services provided to the User for the temporary Electronic Wallet account as stated in paragraph (3) of Article (2) are limited to funding the Electronic Wallet with a limit of 300 US dollars or its equivalent in other circulating currencies for use in purchase transactions only.

6. The maximum limit for the sub-wallet account is 500 US dollars monthly or its equivalent in other circulating currencies, which is considered part of the parent Electronic Wallet's limit, and the maximum limit for cash withdrawal and all payment and transfer operations is 500 US dollars monthly or its equivalent in other circulating currencies.