Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instruction No. (2) of 2024

Regarding the National E-SADAD Invoice Presentation and Payment System

Based on the provisions of Law No. (41) of 2022 concerning National Payments, specifically Articles (7, 18) thereof, And based on what was approved by the Board of Directors of the Palestine Monetary Authority in its session No. (277) dated 2024/07/24, And according to the authorities vested in us, And in pursuit of the public interest, We have issued the following Instructions:

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Article (1)

Definitions

The words and phrases appearing in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

System	National E-SADAD Invoice Presentation and Payment System
System Operator	The Palestine Monetary Authority or a person licensed by the Palestine Monetary Authority to operate the System.
Member	Banks and payment service companies operating in Palestine.
Subscriber	The joint subscriber in the System.
Customer	The customer of the Member who settles the invoice.
Settlement Bank	The bank identified by the Subscriber or payment service company for the purpose of registering or settling the net financial receivables of either party.
Invoice	The financial claim issued by the Subscriber.
Settled Invoice	The financial claim issued by the Subscriber and settled in full or in part through the System.
Commission	The value or percentage imposed on the Settled Invoice or Prepaid Charge, which is deducted from the Subscriber.
Interoperability and Integration Standards	A set of rules and guidelines aimed at regulating how the payment system is linked and integrated between the Operator and the Member.
Electronic Document	Any content stored electronically, whether it is a linear, audio, or visual recording, or

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Article (2)

Objective and Scope of Application

1. The provisions of these Instructions aim to regulate and define the membership requirements in the System.
2. The provisions of these Instructions apply to the System Operator and all Members in the System.

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Article (3)

Operation of the System

The Palestine Payment Services Company shall operate the System.

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Article (4)

Membership

Membership in the System is mandatory for all banks and payment service companies licensed to operate in Palestine.

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Article (5)

Exclusivity of Service Provision

The E-SADAD System is an exclusive system for providing invoice presentation and payment services and prepaid charges. Payment channels and tools approved by the Palestine Monetary Authority may be used for the purpose of executing payments through the System.

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Article (6)

Member Obligations

The Member must comply with the following:

1. Include all System services on the application interfaces used in a clear and separate manner.
2. Display the classification and contributions of System Subscribers' sectors, their services, and the specific information related to them, as stated in the interoperability message issued by the System.
3. Conduct periodic internal audits to ensure that all Subscriber services are provided within the dedicated interface for the System.
4. The Customer must be required to do the following:
   • a. Register the subscription number for the invoicing service and unsubscribe from any of them.
   • b. Apply verification and authentication methods such as (OTP, Pin) and logo marks through SMS messages.
   • c. Transactions executed through approved electronic channels immediately after completion.
   • d. Inquire about invoices and fees issued by the Subscriber and settle them, including the public and private sectors.
   • e. Review the exchange rate if the settlement currency differs from the invoice or fee currency.
5. The Member must obtain written approval from the Palestine Monetary Authority in case of the need to temporarily suspend the connection or operation of its private network with the System, provided that the Member commits to the following:
   • a. Specify the reasons and justifications.
   • b. Specify the date of implementing the measure and the time period for the interruption in service provision.
   • c. Notify customers through appropriate means regarding this measure and the expected time frame for resuming service.
6. In the event of a sudden and emergency interruption in the connection or operation of the Member's private network, the Member must immediately notify the Palestine Monetary Authority and the System Operator, and after the event ends, provide them with the reasons, the processing mechanism, and the measures taken to prevent the event from occurring in the future.
7. The exchange rate must be determined and calculated in the transfer process by the Member who executes the payment order on behalf of the Customer in case the payment currency differs from the currency stated in the invoice, provided that the exchange rates fixed on the payment channels and tools are adhered to.

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Article (7)

Working Hours

1. The Member must commit to providing System services around the clock throughout all days of the week and all days of the year.
2. The clearing session and financial settlement are held on official working days at 11:30 AM for all successful settlement transactions completed before the session time, and on the first working day following official holidays. The Palestine Monetary Authority may determine another time as it deems appropriate, provided that Members are notified thereof.
3. The Palestine Monetary Authority may suspend the operation of the System as it deems appropriate, provided that Members are notified thereof.

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Article (8)

Payment Caps

1. The Member must determine the cap and limits of payments allowed to be settled through the System and re-evaluate the cap in accordance with risks, operational events, customer volume, and their classification to limit fraud, taking into account:
   • a. The type of Subscriber service (e.g., utilities, taxes, university fees).
   • b. The payment mechanism for the service (prepayment, invoice settlement).
   • c. The nature of the Customer (individual, legal entity).
   • d. The number of times the settlement for a single service is executed during the day.
   • e. Improving customer experience and encouraging the use of System services without conflicting with the Member's adopted risk management policy.

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Article (9)

Collection Right

The collection and registration of settled invoice amounts for Subscribers shall be on the same working day if the settlement is executed before the clearing session time; otherwise, it shall be on the next working day.

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Article (10)

Collected Commissions

1. The commission for invoice settlement and prepaid charges through the System shall be according to Annex No. (1).
2. The commissions are deducted from the Subscriber's account and credited to the System Operator and the paying Member.
3. The Palestine Monetary Authority shall deduct the commissions from the settlement account of the Subscriber's settlement bank, and they shall be recorded within the multi-party net balances, by deducting from the Member's bank settlement account in addition to the System Operator's account and the Member's settlement account.
4. The System Operator collects operational fees equal to half of the commission deducted from the Subscriber's account.
5. The Member is prohibited from collecting any commissions from the Customer for using the System.

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Article (11)

Clearing Results

1. The financial debit and credit positions of Members are determined based on multi-party financial positions.
2. The results of clearing operations in the Barq system are settled according to the principle of settling all payments or rejecting all payments based on multi-party net settlement.
3. The Member must provide sufficient ease for settling the results of the clearing operation and funding any deficit in its designated accounts in the settlement system, according to the operational schedule determined by the Palestine Monetary Authority.
4. The Palestine Monetary Authority is implicitly authorized to debit and credit the Member's settlement account in the settlement system.

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Article (12)

Member Infrastructure

The Member must commit to providing the following requirements:

1. The appropriate technical environment and infrastructure for linking and integration with the System.
2. Executing operations on the System in accordance with the interoperability and integration requirements adopted by the System Operator.
3. Passing the test inspection approved by the System Operator.
4. Taking all measures to maintain System service availability of not less than 99.9%.
5. Maintaining the infrastructure and mechanisms necessary for System service provision.
6. Taking all necessary measures and procedures to protect data, information security, and control cyber and operational risks.
7. Bearing any costs or obligations arising from its membership in the System.

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Article (13)

System Operator Obligations

The System Operator is subject to the supervision and oversight of the Palestine Monetary Authority and must comply with the following:

1. Managing and operating the System and providing the necessary support and training to enable banks, payment service companies, and subscribers to join and subscribe to it.
2. Taking all necessary measures and procedures to protect data, information security, and control cyber and operational risks.
3. Periodic maintenance and updates of the System and providing technical support to address related events and complaints.
4. Retaining System data in accordance with the prevailing legislative and regulatory systems in Palestine.
5. Maintaining the quality of services provided through the System and developing them, and updating the interoperability and integration requirements with the System.
6. Notifying the Palestine Monetary Authority immediately in the event of any partial or complete stoppage in System services.
7. Providing the Palestine Monetary Authority with all required data, information, and reports.

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Article (14)

System Records

The electronic documents and records available in the System are considered approved, reliable, and final unless the contrary is proven.

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Article (15)

Electronic Reconciliation

The Member must enhance daily reconciliation procedures, including:

1. Ensuring the receipt of logos enhancing payment operations issued by the System before executing the final debit from the paying Customer's account.
2. Using System records for reconciliation and verification purposes of pending transactions.
3. Reconciling transactions executed through payment service companies and Subscribers if the settlement bank is involved.
4. Reversing pending transactions from the intermediary account to the Customer's account if their successful execution is not confirmed within two additional working days.

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Article (16)

Protection of Customer Rights

The Member must comply with the instructions issued by the Palestine Monetary Authority regarding customer protection and provide the following minimum requirements:

1. Clear disclosure of contact details for the complaints department, including applications and internet banking.
2. Sufficient information on the payment logo, ensuring at a minimum the settled service, value, and execution time.
3. Informational and educational materials about the System, including the access mechanism and a Frequently Asked Questions (FAQ) list.
4. A list of Subscribers' services registered in the System and the specific informational requirement for each service.
5. Using the System's electronic reconciliation interface to process complaints within two additional working days.
6. Notifying the System Operator of any unresolved complaints via the email Support@ppsc.ps.

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Article (17)

Technological Environment

The Member must comply with the Palestine Monetary Authority's instructions regarding the technological environment, business continuity, and cybersecurity.

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Article (18)

Suspension of Membership

1. The Palestine Monetary Authority may suspend membership in the System if the Member fails to comply with the provisions of these Instructions.
2. The Palestine Monetary Authority may suspend membership in the System if it deems such action necessary to protect the System and the banking sector's interest.
3. In either of the cases mentioned in paragraphs (1) and (2) of this Article, the results of clearing operations shall be included in calculating the liquidation result for that session as the Palestine Monetary Authority deems appropriate.
4. The suspension of a Member's membership does not exempt the Member from the obligations incumbent upon it or that may arise from its membership in the System during any period and without a specific date for this obligation.

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Article (19)

Anti-Money Laundering and Combating the Financing of Terrorism

The System Operator and the Member must comply with the provisions and requirements of the Anti-Money Laundering and Combating the Financing of Terrorism Law and the circulars issued thereunder.

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Article (20)

Repeal of Instructions

1. Instruction No. (09) of 2023 concerning the National E-SADAD Invoice Presentation and Payment System and Instruction No. (16) of 2023 concerning the amendment of these Instructions issued for banks operating in Palestine are repealed.
2. Instruction No. (03) of 2023 concerning the National E-SADAD Invoice Presentation and Payment System and Instruction No. (04) of 2023 concerning the amendment of these Instructions for payment service companies operating in Palestine are repealed.
3. Everything inconsistent with the provisions of these Instructions is repealed.

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Note: Postal Code: P6160675 | Phone: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 www.pma.ps