Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (11) of 2019

Regarding the Amendment of Instructions No. (10) of 2019

Pursuant to the provisions of Law Decree No. (9) of 2010 on Banks, particularly Article (43) thereof, and the provisions of Law Decree No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism, particularly Articles (14, 16, 23), and in pursuit of the public interest, we have issued the following instructions:

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Article (1)

Article Two, Paragraph (1) is amended to read as follows:
The establishment of an Anti-Money Laundering and Counter-Terrorism Financing function to monitor compliance with the provisions of the Law Decree on Combating Money Laundering and the Financing of Terrorism at the senior management level, with this function to be assigned to an independent officer at the rank of Manager titled "Anti-Money Laundering and Counter-Terrorism Financing Officer".

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Article (2)

Article Two, Paragraph (3) is amended to read as follows:
Adoption of a clear organizational structure for the Anti-Money Laundering and Counter-Terrorism Financing function, ensuring that the structure is commensurate with the bank's size, type, risks, operational complexity, and customer base.

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Article (3)

1. The preamble of Article Four is amended to read as follows: "The bank must ensure the independence of the Anti-Money Laundering and Counter-Terrorism Financing function from the bank's executive activities, such that the Anti-Money Laundering and Counter-Terrorism Financing Officer has the following:"
2. Article Four, Paragraph (1) is amended to read as follows:
   "A position within the bank's organizational structure that clarifies its affiliation and independence, such that it reports to the Board of Directors or a compliance committee emanating therefrom."
3. Paragraphs Two and Three of Article Four are repealed.

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Article (4)

Paragraph Seven of Article Five is repealed.

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Article (5)

Article Six, Paragraph (1) is amended to read as follows:
"The Anti-Money Laundering and Counter-Terrorism Financing Officer and their deputy are appointed by the Board of Directors, subject to obtaining the approval of the Palestine Monetary Authority for the appointment."

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Article (6)

1. Article Six, Paragraph (2/d) is amended to read as follows:
   "Holding specialized professional certifications in combating money laundering and the financing of terrorism, such as (PAMLA or CAMS) and any other international certifications related to combating money laundering and the financing of terrorism."

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Article (7)

Article Seven, Paragraph (1/a) is amended to read as follows:
"Internal Audit at the bank shall undertake the following: Audit the anti-money laundering and counter-terrorism financing systems and policies, and evaluate the extent of the function's independence and effectiveness in mitigating money laundering and terrorism financing risks, and evaluate the quality and effectiveness of systems and programs used to monitor unusual transactions and suspicious cases. Audit is prohibited from accessing any data related to suspicious case reports."

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Article (8)

Repeal
All provisions conflicting with the articles of these instructions are repealed.

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Article (9)

Entry into Force
All competent authorities shall, each within their respective purview, implement the provisions of these instructions, which shall apply from the date of their issuance.

Issued in the city of Ramallah on Monday, dated 02/12/2019

Supervision and Inspection Department
Palestine Monetary Authority

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Note:
The text mentioned above has been accurately translated from the provided images, preserving the original formatting (headings, paragraphs, numbers, and signatures) as they appeared in the original documents.

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Contact Information (at the bottom of each page):

Ramallah and Bethlehem - Palestine
P.O. Box 452, Palestine info@pma.ps | Fax: +970 2 2415310 | Phone: +970 2 2415251 Gaza - Palestine P.O. Box 4026, Palestine Fax: +970 8 2844487 | Phone: +970 8 2825713 www.pma.ps