Regulatory Alerts2019-01-01
Circular No. 172/2019: Developmental Provisions Amended on the Returned Cheques System Version
The Palestine Monetary Authority issued Circular No. 172/2019 to implement developmental amendments to the returned cheques system and amicable settlements framework. The circular mandates that banks archive historical returned cheques once the legal disclosure period expires, adopt ISO nationality codes for client files, and transition from paper-based to system-based amicable settlements for clients reclassified to grade E. Banks are required to disseminate these updated procedures to relevant staff and ensure full compliance effective immediately upon issuance.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (172/2019)
To all banks operating in Palestine
Date: Monday, July 8, 2019
Subject: Developmental Provisions Amended on the Returned Cheques System Version
In line with the Palestine Monetary Authority's aspirations to transform into a central bank and its continuous efforts to develop its regulatory systems and policies in harmony with developments in the Palestinian banking environment and in accordance with best international practices, and continuing the development processes for the returned cheques system, and based on Instructions No. 2/2017 dated 02/02/2017 governing the operation of the returned cheques system and amicable settlements, please find attached the key amendments made to the returned cheques system:
And the Amicable Settlements System:
First: Amendment to the Returned Cheques Report
The client-specific returned cheques report has been developed to display historical cheques that were returned to the client's account and for which the legal disclosure period has expired. These have been archived in the database so that they can be viewed via the "Client Cheques Archive" button located on the left side of the client-specific returned cheques report.
Second: Amendment to the Structure of the Returned Cheques File from Branches and Foreign and Israeli Clearing
The structure of the returned cheques file from branches of the same bank and Israeli and foreign clearing houses has been amended. Nationality codes according to ISO standards have been adopted for disclosing client nationalities, as well as for declaring the client's nationality in the returned cheques file according to ISO, specifically (PS0) instead of (970), in accordance with the classifications provided in Annex No. (1) attached.
Third: Amendment to Disclosure Mechanisms
The disclosure mechanisms for returned cheques on accounts of clients classified as grade (C or D) who have completed their legal penalty period and whose classification has changed to (E) have been amended. Returned cheques on the client's account will be archived when the first cheque is returned to the client's account. Please note that the client's classification will be subject to the number of returned cheques on the account.
Fourth: Amendment to Amicable Settlement Mechanisms
The amicable settlements system has been developed to allow amicable settlements for clients who have completed their legal penalty period, had their classification changed to (E), and subsequently had new cheques returned to their accounts. Settlements for these newly returned cheques will be submitted through the system. Accordingly, the use of paper settlements as per Circular No. (118/2017) dated 7/6/2017 will be discontinued effective from the issuance of this circular.
This circular takes effect from the date of its issuance, and banks are required to ensure that appropriate measures are taken to disseminate the content to relevant employees to ensure compliance.
Market Regulation Department
Palestine Monetary Authority
Annex No. (1)
International Country Codes (For the Purpose of Determining Client Nationality)
| Country | ISO |
|---|---|
| United Arab Emirates | AE |
| Argentina | AR |
| Australia | AU |
| Austria | AT |
| Belgium | BE |
| Bulgaria | BG |
| Bahrain | BH |
| Bosnia and Herzegovina | BA |
| Brazil | BR |
| Brunei | BN |
| Canada | CA |
| Chile | CL |
| China | CN |
| Cameroon | CM |
| Colombia | CO |
| Costa Rica | CR |
| Cuba | CU |
| Cyprus | CY |
| Czech republic | CZ |
| Germany | DE |
| Djibouti | DJ |
| Denmark | DK |
| Algeria | DZ |
| Ecuador | EC |
| Egypt | EG |
| Spain | ES |
| Finland | FI |
| France | FR |
| United Kingdom | GB |
| Greece | GR |
| Guatemala | GT |
| Hong Kong | HK |
| Hungary | HU |
| Indonesia | ID |
| India | IN |
| Ireland | IE |
| Iraq | IQ |
| Israel | IL |
| Italy | IT |
| Jordan | JO |
| Japan | JP |
| Kenya | KE |
| Country | ISO |
|---|---|
| South Korea | KR |
| Kuwait | KW |
| Lebanon | LB |
| Lybia | LY |
| Sri Lanka | LK |
| Luxembourg | LU |
| Morocco | MA |
| Mexico | MX |
| Malta | MT |
| Mauritania | MR |
| Malaysia | MY |
| Nigeria | NG |
| Holland | NL |
| Norway | NO |
| New Zealand | NZ |
| Sultanate of Oman | OM |
| Pakistan | PK |
| Peru | PE |
| Philippines | PH |
| Poland | PL |
| Portugal | PT |
| Paraguay | PY |
| Palestine | PS |
| Qatar | QA |
| Romania | RO |
| Russia | RU |
| Saudi Arabia | SA |
| Sudan | SD |
| Senegal | SN |
| Singapore | SG |
| Sweden | SE |
| Switzerland | SZ |
| Syria | SY |
| Thailand | TH |
| Tunisia | TN |
| Turkey | TR |
| Taiwan | TW |
| Uganda | UG |
| Ukraine | UA |
| Uruguay | UY |
| United States of America | US |
| Venezuela | VE |
| Yemen | YE |
| Zambia | ZM |
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Tel: +970 8 2825713