Palestine Monetary Authority

Circular No. (111/2007)

To all Islamic banks operating in Palestine
Date: Wednesday, August 01, 2007

Subject: Disposal of Illicit Gains

With reference to the fatwa issued by His Eminence the Grand Mufti of Jerusalem and Palestine dated 25/7/2007 regarding the handling of illicit gains accounts by Islamic banks, and to clarify the mechanisms for disposing of illicit gains, all Islamic banks operating in Palestine must handle illicit gains accounts as follows:

Illicit gains balances must be disposed of in general community aspects that benefit society as a whole, such as distributing them to poor Muslims or for the general interests of Muslims.
Banks are prohibited from agreeing to pay any amounts from the illicit gains balance to the bank itself, whether this agreement relates to training, media and marketing campaigns, credit fees at financial and cultural conferences and seminars, consulting fees, gifts, excessive expenses, or any other similar expenses that benefit the bank, as the bank is obligated to cover such expenses as inherent commitments.
It is necessary to dispose of the illicit gains balance through charitable and benevolent avenues and public benefit uses within the year, as well as not carrying forward or rolling over the illicit gains balance to subsequent years.

This circular takes effect from its date, and all Islamic banks operating in Palestine must fully comply with it.

Bank Supervision Department
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 www.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