Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (157/2020)

To All Money Transfer Companies Operating in Palestine

Date: Wednesday, July 29, 2020

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Subject: Fraudulent Methods

The Palestine Monetary Authority urges money transfer companies to take necessary precautionary and protective measures to avoid the fraudulent methods targeting citizens. It has been observed recently that some citizens have been victims of fraud and scams using several criminal methods by receiving messages or calls via communication and social media platforms from individuals residing outside the State of Palestine, urging them to do the following:

1. Sending a money transfer for a specific amount to purchase US dollars at a price lower than the official exchange rate, in exchange for the scammer's commitment to send a return money transfer worth more than the sent amount (i.e., the purchase price). This is known as the "Frozen Dollar Scam". For example: sending a transfer of $3,000 in exchange for receiving a transfer of $5,000. Note that the scammer may initially persuade the victim to send a small amount and then a larger amount to gain their trust before cutting off communication.

2. Sending a money transfer to activate a value that will be sent to them as prizes or aid. Scammers often forge transfer receipts stating "The transfer will not be delivered to the beneficiary until activated," and/or contact and defraud citizens using complex social media pages impersonating prominent figures, including but not limited to princes, princesses, and television show hosts.

3. Sending a transfer to participate in a draw for large cash and in-kind prizes, and/or sending a transfer for a nominal amount to purchase a luxury car.

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4. Sending money transfers aimed at extorting citizens out of fear that videos or recorded materials of them will be published.

In line with the Palestine Monetary Authority's commitment to mitigating the risks of money laundering and terrorist financing, and to prevent citizens from falling victim to fraud and scam crimes, we reiterate the necessity of taking precautionary and protective measures to avoid citizens being targeted by these fraudulent methods, including the following:

1. Exercising due diligence to identify the purpose of the transfer and the financial relationship between the sender and the beneficiary, and supporting it with relevant documentation. Transfers shall not be executed if the electronic transfer data stipulated under National Committee Instructions No. (1/C) of 2017 is not provided.

2. Preparing awareness and educational brochures for customers to mitigate the risks of fraudulent methods, to be displayed at money transfer company offices and shared via the company's social media channels.

3. Enhancing the capacity of transfer staff regarding the risks of fraud crimes via communication and social media platforms, and strengthening and raising customer awareness of these risks prior to executing financial transfers.

4. Fulfilling the reporting obligations stipulated under the provisions of Decree-Law No. (20) of 2015 on Combating Money Laundering and Terrorist Financing and the instructions issued thereunder.

5. Notifying the Palestine Monetary Authority in writing of any operational incidents related to fraud against citizens, whether the transfer was executed or not, via the official email address of the Anti-Money Laundering and Combating the Financing of Terrorism Department: AML-CFT@pma.ps

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Supervision Group
Palestine Monetary Authority

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Note:
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