Regulatory Alerts2007-01-01
Circular No. 136: Commitment to Maximum Transparency in Customer Relations
The Palestine Monetary Authority issued Circular No. 136/2007 to mandate maximum transparency in banking-customer relationships. The directive prohibits customers from signing blank contracts or pages and requires banks to provide copies of all executed agreements, including direct and indirect facilities. Non-compliance will be actively monitored and subject to a five thousand US dollar financial penalty per institution.
Palestine Monetary Authority
Palestine Monetary Authority
Circular No. (136/2007)
To all banks operating in Palestine
Date: Thursday, 13 September 2007
Based on Articles 38 and 54 of the Banks Law of 2002, and with the Palestine Monetary Authority's commitment to ensuring the banking sector adheres to the highest degrees of transparency in customer relations, and in compliance with best practices in banking operations, all banks are required to comply with the following:
- Customers must not sign blank contracts or blank pages ("signing in blank").
- Providing customers with copies of all contracts signed with them, particularly direct and indirect facility agreements.
- All banks must adhere to the above, noting that the Palestine Monetary Authority will monitor compliance, and that a financial penalty of five thousand US dollars will be imposed on non-compliant banks.
Dr. Nihad Al-Masrif
Palestine Monetary Authority
Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922
Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487
E-mail: info@pma.ps
Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922
Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487
www.pma.ps