Regulatory Alerts2016-01-01
Instructions No. 3 of 2016 on Combating Money Laundering and Terrorist Financing Regarding the Import of Used Cars from Outside the State of Palestine
The National Committee for Combating Money Laundering and Terrorist Financing issued Instructions No. 3 of 2016 to regulate the importation of used vehicles into Palestine as a high-risk non-financial activity subject to anti-money laundering and counter-terrorist financing obligations. The directives mandate that customs declarations for imported used cars be withheld until the Customs Administration verifies certified banking transactions matching the importer's legal or personal account, thereby ensuring enhanced due diligence, beneficial ownership disclosure, and fund source verification by financial institutions. These measures, which apply to all competent authorities including the Monetary Authority and Customs Administration, take effect on January 1, 2017, and require annual valuation determinations by customs while explicitly prohibiting the use of imported vehicles to conceal illicit proceeds.