Regulatory Alerts2018-01-01
Circular No. 232 on Illicit Gains
The Palestine Monetary Authority issued Circular No. 232 to enforce strict compliance with Sharia principles regarding the handling of illicit gains by Islamic banks operating in Palestine. The directive prohibits banks from spending any illicit gains that actually belong to the institution and mandates that all accumulated illicit gains be disposed of through channels of public benefit in accordance with Islamic Sharia. Islamic banks are required to submit their approved internal policies for managing illicit gains to the Authority no later than December 15, 2018.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2018/232)
To all Islamic banks operating in Palestine
Date: Sunday, October 28, 2018
Subject: Illicit Gains
Further to the requirements of clause (5/7) regarding illicit gains under Instructions No. (2013/5) dated March 20, 2013, concerning the regulation of Islamic banks' operations and Sharia supervision, we emphasize the necessity of adhering to the designated uses for disbursing illicit gains. Specifically, spending any amounts from their balance that actually belong to the bank is prohibited, and the balance of illicit gains accumulated during the year must be disposed of in channels of public benefit and in accordance with Islamic Sharia principles. The Authority must be provided with the approved policy for handling illicit gains no later than December 15, 2018.
Supervision and Inspection Department
Palestine Monetary Authority
Ramallah - Palestine PO. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2415310 | Fax: +970 2 2415310 | Tel: +970 2 2415250 | P.O. Box 452 Ramallah - Palestine
Gaza - Palestine PO Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Fax: +970 8 2844487 | Tel: +970 8 2825292 | P.O. Box 4026 Gaza - Palestine
Email: info@pma.ps | Email: info@pma.ps
www.pma.ps