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2022-01-01

Circular No. (2022/69) on High-Risk Jurisdictions and Jurisdictions Under Enhanced Follow-Up

The Palestine Monetary Authority issued Circular No. (2022/69) to direct all banks operating in Palestine to implement the requirements of Financial Follow-up Unit Decision No. (2022/1) regarding high-risk jurisdictions and those under enhanced follow-up as listed by the FATF. Banks are required to incorporate concerns about deficiencies in AML/CFT systems of gray-listed countries into their self-assessments and apply a risk-based approach with enhanced due diligence where high risks are identified. The circular explicitly prohibits blanket restrictions on financial access for specific groups, allowing prohibitions only for unidentified persons, those using fictitious names, or those linked to money laundering or terrorist financing indicators.

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (2022/69)

To all banks operating in Palestine

Date: Monday, March 14, 2022

Subject: High-Risk Jurisdictions and Jurisdictions Under Enhanced Follow-Up

Attached is a copy of the decision issued by the Financial Follow-up Unit No. (2022/1) dated 2022/03/10 regarding High-Risk Jurisdictions and Jurisdictions Under Enhanced Follow-Up in accordance with the list issued by the Financial Action Task Force (FATF).

Accordingly, the necessary legal measures are requested to implement the requirements of the aforementioned decision and the measures that must be taken in this regard, emphasizing the necessity to comply with the following:

  1. Take into account concerns regarding deficiencies in Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) systems in countries classified within the "Grey List" (Jurisdictions Under Enhanced Follow-Up), when conducting and updating the self-assessment of money laundering and terrorist financing risks.

  2. Apply the Risk-Based Approach (RBA), such that the application of due diligence procedures is proportional to (the results of risk analysis, the nature of financial transaction risks, customer risks, and country classification), with enhanced due diligence measures being taken when high risks are perceived.

  3. The measures taken should not prevent a specific entity from accessing financial and banking services; such as restricting the issuance and receipt of remittances to first-degree relatives, except for prohibiting dealings with unidentified persons, persons using fictitious or false names, or persons prohibited from dealing with under current legislation, or based on instructions from the Palestine Monetary Authority, or when there are indicators of committing money laundering or terrorist financing or any of the predicate crimes.

Supervisory Group
Palestine Monetary Authority

Copy: The Honorable Members of the Financial Follow-up Unit

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
www.pma.ps

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