Regulatory Alerts2012-01-01
Instructions No. (2012/1) to All Money Changers in Palestine: Minimum Capital Requirements
The Palestine Monetary Authority issued Instructions No. (2012/1) to establish minimum paid-up capital requirements for money changers operating within and outside city limits, denominated in US dollars. The directive mandates that all money changers must align their capital structures with the specified thresholds based on their legal form and submit a compliance payment schedule within one month. Full capitalization must be completed by the end of 2013, while simultaneously repealing prior transitional capital provisions for money changers converting into companies.
Palestine Monetary Authority
Palestine Monetary Authority
Instructions No. (2012/1) To All Money Changers Operating in Palestine Date: Tuesday, February 28, 2012
Subject: Minimum Capital Requirements
In addition to Instructions No. (2011/1) issued on June 1, 2011, concerning the licensing of money changers, the following: Instructions Governing the Capital of Money Changers:
- Money changers must maintain paid-up capital commensurate with their business volume.
- The minimum paid-up capital for money changers shall be as follows:
A. Money Changers Licensed to Operate Within City Limits:
Denominated in US Dollars
| Capital | Legal Form |
|---|---|
| 250,000 | General Partnership, Limited Liability Company |
| 500,000 | Private Joint Stock Company |
| 2,000,000 | Public Joint Stock Company |
B. Money Changers Licensed to Operate Outside City Limits:
Denominated in US Dollars
| Capital | Legal Form |
|---|---|
| 100,000 | General Partnership, Limited Liability Company |
| 250,000 | Private Joint Stock Company |
| 1,000,000 | Public Joint Stock Company |
- Paragraph 1 of Article (3) of Instructions No. (2011/1), concerning the capital of money changers upon their conversion into companies, is hereby repealed, and the provisions of these Instructions shall apply to them.
- All money changers must regularize their status in compliance with these Instructions and submit a payment schedule for the capital within a period not exceeding one month from the date hereof, with full capital payment to be completed no later than the end of 2013.
Supervision and Inspection Department Palestine Monetary Authority
Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps
Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487