Circular No. 124 Counting and Inspection of Banknotes

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Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY

Circular No. (124/2022)
To all banks operating in Palestine
Date: Sunday, June 05, 2022

Subject: Counting and Inspection of Banknotes

Based on Palestine Monetary Authority Instruction No. (2012/12), and in our commitment to combat the phenomenon of banknote counterfeiting and forgery, and to mitigate the risks of money laundering and terrorist financing as well as any potential risks, we emphasize the necessity of taking immediate action on the following:

1. Regularly maintain and calibrate the specifications of banknote counting and inspection machines, and work to align machine specifications with the security and technical standards of all circulating banknote issues in the State of Palestine.
2. The specifications of circulating banknote counting and inspection machines must be capable of achieving the following features:
   a. Count all denominations of a single currency. b. Detect counterfeit and forged banknotes.
   c. Sort out damaged banknotes.
   d. Inspect the security features and specifications of banknotes using infrared, ultraviolet, watermarks, and magnetic detection. e. The ability to document inspection processes through detection devices via computers, including generating reports related to executed banknote inspections.
3. Enhance staff capabilities by enrolling them in specialized courses on counterfeiting and forgery detection.
4. Take the necessary legal measures to combat banknote forgery and counterfeiting crimes; including reporting to the General Security and handing over the original suspected counterfeit banknotes to them, and notifying the Financial Monitoring Unit.

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[Palestine Monetary Authority Logo]

Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY

5. Accept cash deposits from all current issues of circulating banknote denominations in Palestine, provided that automated measures and controls are implemented to ensure that customers are not handed old-issue banknotes via counters or ATMs.
6. Cooperate with citizens wishing to inspect banknotes in their possession to verify the integrity and authenticity of their security features.
7. Notify the Anti-Money Laundering and Counter-Terrorist Financing Department at the Palestine Monetary Authority in writing regarding the implementation of legal measures, via the department's official email: AML-CFT@PMA.PS

Supervision Group
Palestine Monetary Authority

Copy to: The Honorable Financial Monitoring Unit

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