Regulatory Alerts2021-01-01
Instructions No. 23 of 2021 on Updating Customer Data Based on the Risk-Based Approach
The Palestine Monetary Authority issued Instructions No. 23 of 2021 to mandate that all licensed banks update customer data using a Risk-Based Approach (RBA) aligned with anti-money laundering and counter-terrorist financing standards. The directive requires immediate data updates upon suspicious activity or fundamental changes, establishes mandatory review cycles of one, three, or five years for high, medium, and low-risk clients respectively, and restricts electronic updates to low-risk customers only. Banks must implement robust internal policies, maintain automated monitoring systems, submit monthly statistical reports to the Authority, and complete all mandatory updates by the end of Q1 2022, with non-compliance subject to penalties under existing banking and AML/CFT legislation.