Regulatory Alerts2016-01-01
Circular No. 162: Invoking PMA Instructions and Decisions as Justification
The Palestine Monetary Authority issued Circular No. 162/2016 to prohibit banks from refusing credit facilities, checkbooks, account openings, or other services by citing PMA regulations as justification. The directive mandates that all banks instruct their staff to strictly adhere to professional and transparent standards, requiring them to provide customers with legitimate reasons for denying any service requests. Non-compliance will result in corrective measures and financial penalties under Banking Law No. 9 of 2010.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (162/2016)
To all banks operating in Palestine
Date: Wednesday, 07 September, 2016
Subject: Invoking PMA Instructions and Decisions
Following Circular No. (2008/05) dated 25/06/2008 and Circular No. (2012/44) dated 22/03/2012 regarding the adoption of appropriate corrective measures, including imposing fines in accordance with Banking Law No. (9) of 2010 against banks that refuse to grant credit facilities, issue checkbooks, or decline to open accounts, conduct amicable settlements, or provide any other services by invoking PMA instructions, circulars, and regulations. Therefore, we reiterate the points stated in the aforementioned circulars and emphasize that PMA instructions aim to regulate and stabilize the banking sector to ensure the rights of all parties.
Accordingly, all banks are required to circulate this directive to their staff, ensuring strict adherence to the highest standards of professionalism and transparency in their dealings with customers, and providing them with genuine justifications for not fulfilling their requests. Penalties, including financial fines, will be imposed if the contrary is established.
Deputy Governor
for Financial Stability Affairs
Supervision and Inspection Department
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487
Email: info@pma.ps