Regulatory Alerts2022-01-01
Circular No. 193 Wages of Palestinian Workers Employed Inside the Green Line
The Palestine Monetary Authority issued Circular No. 193/2022 to mitigate local market shekel inflows by mandating that all operating banks transfer Palestinian workers' wages earned inside the Green Line directly to their bank accounts. Banks must activate these accounts without fees, exempt wage transfers from all charges, and implement targeted financial products, marketing campaigns, and internal controls to prevent permit broker exploitation. Additionally, banks are required to submit monthly reports to the Authority detailing account activation rates and incoming transfer volumes relative to opened accounts.
Palestine Monetary Authority PALESTINE MONETARY AUTHORITY
Circular No. (193 / 2022) To all banks operating in Palestine Date: Sunday, August 21, 2022
Subject: Wages of Palestinian Workers Employed Inside the Green Line
In the context of the Palestine Monetary Authority's efforts to curb the flow of the shekel into the local market and the resulting difficulties, which consist of restrictions imposed on shekel loading operations, the Authority has previously proposed several measures to mitigate the flow of shekels into the local market. These measures include transferring the wages of Palestinian workers employed inside the Green Line to their bank accounts. To facilitate the wage transfer process, banks are required to comply with the following:
- Activate workers' accounts previously opened without charging any commissions or fees.
- Exempt transfers related to the wages of workers employed inside the Green Line from any commissions or fees.
- Implement programs and incentives for the worker category, including offering various banking products and services that align with their needs, such as opening current and savings accounts, granting facilities, issuing debit and credit cards, and providing electronic services.
- Conduct media and marketing campaigns for workers highlighting financial and banking services exempt from fees and commissions, as well as the prices of other financial and banking services provided by the bank, and provide workers with a guide on using electronic means and channels for banking transactions.
- Strengthen internal supervisory procedures and controls to ensure the proper use and utilization of bank accounts by workers in accordance with sound banking procedures, and to curb the phenomenon of permit brokers.
- Provide the Palestine Monetary Authority with a monthly statement showing the number of accounts opened, the number of activated accounts, and incoming transfers relative to the number of opened accounts.
Supervision Group Palestine Monetary Authority
www.pma.ps Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Tel: +970 2 2415310 | Fax: +970 2 2415251 Gaza - Palestine P.O. Box 4026 Tel: +970 8 2844487 | Fax: +970 8 2825713
Palestine Monetary Authority PALESTINE MONETARY AUTHORITY
| Bank Name: | Number of Workers' Accounts Opened at the Bank | Number of Accounts that Received Financial Transfers during the Month | Number of Incoming Transfers during the Month | Total Value of Incoming Transfers during the Month (in Shekel) | | :--- | | | | | | Branch | | | | |
www.pma.ps Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Tel: +970 2 2415310 | Fax: +970 2 2415251 Gaza - Palestine P.O. Box 4026 Tel: +970 8 2844487 | Fax: +970 8 2825713