Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (183/2019)
To all banks operating in Palestine
Date: Thursday, July 18, 2019

Subject: High-Risk Countries and Countries Under Increased Monitoring for Compliance with International Standards

Enclosed is a copy of Decision No. (2019/2) issued by the Financial Follow-Up Unit on 2019/07/17 regarding high-risk countries and countries under increased monitoring for compliance with international standards, in accordance with the list issued by the Financial Action Task Force (FATF).

Accordingly, all banks operating in Palestine are requested to take the necessary legal measures to implement the requirements of the aforementioned decision and the specific measures to be taken.

Supervision and Inspection Department
Palestine Monetary Authority

Copy: The Honorable Financial Follow-Up Unit

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Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 Gaza - Palestine P.O. Box 4026 Fax: +970 8 2844487 | Tel: +970 8 2825713 www.pma.ps

Financial Follow-Up Unit

State of Palestine

Financial Follow-Up Unit
State of Palestine

Decision No. (2019/2)
Issued by the Financial Follow-Up Unit
Dated July 17, 2019

REGARDING HIGH-RISK COUNTRIES AND COUNTRIES UNDER INCREASED MONITORING FOR COMPLIANCE WITH INTERNATIONAL STANDARDS

Pursuant to the provisions of Legislative Decree No. (20) of 2015 on combating money laundering and terrorist financing and its amendments, particularly paragraph (16) of Article (20), and based on National Committee for Combating Money Laundering and Terrorist Financing Decision No. (8/J/2016) issued on 01/12/2016 regarding delegating the Financial Follow-Up Unit to publish the list of high-risk countries periodically issued by the Financial Action Task Force (FATF), and subsequently what was decided by the Group on 21/06/2019, and in reference to National Committee for Combating Money Laundering and Terrorist Financing Decision No. (6/J/2016) issued on 01/08/2017 regarding prohibiting financial transactions with the Democratic People's Republic of Korea, and based on public interest requirements, the following is decided:

First: High-Risk Countries

The following countries are considered high-risk due to strategic deficiencies regarding anti-money laundering and counter-terrorist financing standards, and shall be treated according to the following specifications:

Country Name	Required Measures
Democratic People's Republic of Korea (North Korea)	All financial institutions are prohibited from conducting financial transactions with North Korea.

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State of Palestine – Al Bireh P.O.Box 3981
Tel.: 0097022967401/2 Fax: 0097022967426
E-mail: info@ffu.ps www.ffu.ps

Financial Follow-Up Unit

State of Palestine

Financial Follow-Up Unit
State of Palestine

| Iran | Continue taking enhanced due diligence measures regarding business relationships with Iran, including financial transactions executed from or to it, if for the benefit of natural or legal persons, and consider correspondent banking relationships with financial institutions operating and licensed in Iran, in accordance with the provisions of Legislative Decree No. (20) of 2015 on combating money laundering and terrorist financing and its amendments, the instructions issued thereunder, and FATF Recommendation No. (19). |

Second: Countries Under Increased Monitoring for Compliance with International Standards

The following countries are under increased monitoring for compliance with international standards related to combating money laundering and terrorist financing, and shall be treated according to the following specifications:

Country Name	Required Measures
Commonwealth of The Bahamas (Bahamas)	Given that these countries have made a high political commitment to address strategic deficiencies, all financial institutions must take ongoing due diligence measures regarding business relationships with these countries, including financial transactions executed from or to them, to mitigate risks associated with executed financial transactions and identify fund sources, in accordance with Legislative Decree No. (20) of 2015 on combating money laundering and terrorist financing and the instructions issued thereunder.
Republic of Botswana
Ghana
Pakistan
Syria
Sri Lanka
Angola
Yemen

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State of Palestine – Al Bireh P.O.Box 3981
Tel.: 0097022967401/2 Fax: 0097022967426
E-mail: info@ffu.ps www.ffu.ps

Financial Follow-Up Unit

State of Palestine

Financial Follow-Up Unit
State of Palestine

Tunisia
Trinidad and Tobago
Cambodia
Panama

Third: Obligations of Financial Institutions

All financial institutions operating in Palestine shall take the measures specified in the tables outlined in Sections (First) and (Second) of this Decision.

Fourth: Update

This Decision supersedes Financial Follow-Up Unit Decision No. (2019/1) regarding high-risk and/or non-compliant countries concerning anti-money laundering and counter-terrorist financing standards, issued on February 25, 2019.

Fifth: Implementation

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

Director of the Financial Follow-Up Unit
A. Wael Fiqi

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State of Palestine – Al Bireh P.O.Box 3981
Tel.: 0097022967401/2 Fax: 0097022967426
E-mail: info@ffu.ps www.ffu.ps