Region

Jurisdiction

Regulator

2017-01-01

Circular No. 163 Requirements for Dealing with Lari and Al-Fardan Exchange Companies

The Palestine Monetary Authority and the National Committee for Combating Money Laundering and Financing of Terrorism issued Circular No. 2017/163 and Decision No. 2017/7 to mandate strict compliance measures for all Palestinian banks interacting with Lari and Al-Fardan Exchange Companies. The directives require banks to obtain certified approvals, updated Wolfsberg questionnaire responses, UAE Central Bank authorizations, risk-based operational procedures, and enhanced due diligence clarifications from the two UAE-based firms by September 1, 2017. Failure to comply will result in a complete prohibition on processing any incoming or outgoing remittance transactions involving these exchange companies.

Palestine

Palestine Monetary Authority

Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (2017/163)
To all banks operating in Palestine
Date: Monday, 07 August 2017

Subject: Requirements for Dealing with Lari and Al-Fardan Exchange Companies

Attached is Decision No. (2017/7) of the National Committee for Combating Money Laundering and Financing of Terrorism regarding the requirements for dealing with Lari and Al-Fardan Exchange Companies. Accordingly, all banks are required to take the necessary measures to implement the requirements of the aforementioned decision.

Supervision and Inspection Department
Palestine Monetary Authority

Copy: Financial Monitoring Unit

Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2415310 | Fax: +970 2 2415310 | Tel: +970 2 2415250 | Ramallah - Palestine P.O. Box 452
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Fax: +970 8 2844487 | Tel: +970 8 2825292 | Gaza - Palestine P.O. Box 4026
Email: info@pma.ps | Email: info@pma.ps
www.pma.ps

National Anti Money Laundering, CFT Committee

State of Palestine

National Committee for Combating Money Laundering and Financing of Terrorism
State of Palestine

Decision No. (2017/7)
Regarding the requirements for dealing with Lari and Al-Fardan Exchange Companies

Based on Law No. (20) of 2015 concerning the combating of money laundering and financing of terrorism, and its amendments, and specifically paragraphs (14, 15) of Article (20), and since the transactions originating from Lari and Al-Fardan Exchange Companies, headquartered in the United Arab Emirates, are associated with high risks regarding the required information necessary to execute financial transactions, and deficiencies in due diligence procedures were identified in the financial transactions originating from the two companies to banks operating in the State of Palestine, and in light of the on-site inspection round results report on banks submitted by the Supervision and Inspection Department of the Palestine Monetary Authority dated 23/05/2017, and based on the Financial Monitoring Unit's report regarding the risk study of Lari and Al-Fardan Exchange Companies, and based on the authorities granted to us under Decision No. (5 J/2017) of the National Committee for Combating Money Laundering and Financing of Terrorism dated (01/08/2017),

And in accordance with public interest requirements, it is decided as follows:

First

The definitions set forth in Law No. (20) of 2015 concerning the combating of money laundering and financing of terrorism and its amendments shall apply wherever mentioned in this Decision.

National Anti Money Laundering, CFT Committee

State of Palestine

National Committee for Combating Money Laundering and Financing of Terrorism
State of Palestine

Second

All banks operating in Palestine, regarding dealings with Lari and Al-Fardan Exchange Companies, must comply with the following requirements:

Obtain a certified true copy of the approvals granted by the Palestine Monetary Authority to exchange companies operating in Palestine that permit dealing with the aforementioned two companies in the field of remittances to or from Palestine, as indicated in Article (3) of Decision No. (41) of 2016 concerning the licensing and supervision system for the exchange profession.
Obtain an updated copy of the two companies' responses to the questionnaire issued by "Wolfsberg" regarding anti-money laundering procedures.
Obtain a certified true copy of the official authorizations issued by the Central Bank of the UAE, which permit the two companies to open and use accounts with external banks for the purpose of conducting external remittance transactions.
Obtain the two companies' operational procedures related to the risk-based approach at all its stages, including procedures for classifying high-risk financial products and customers.
Obtain clarifications from the two companies regarding their due diligence and enhanced due diligence procedures, specifically procedures for dealing with politically exposed persons, financial transactions in which the two companies act as intermediaries, and dealings with lists issued pursuant to Security Council resolutions related to combating the financing of terrorism.

National Anti Money Laundering, CFT Committee

State of Palestine

National Committee for Combating Money Laundering and Financing of Terrorism
State of Palestine

Third

All banks must provide the Palestine Monetary Authority with all requirements outlined in Item (Second) of this Decision by no later than 01/09/2017. Failure to do so will result in a prohibition on all banks operating in Palestine from executing any transactions incoming to or outgoing from Al-Fardan and Lari Exchange Companies.

Fourth

All competent authorities shall implement the provisions of this Decision within their respective jurisdictions, and it shall take effect from the date of its issuance.

Issued in Ramallah on 6/8/2017

Committee Chairman
Azzam Al-Shawa