Regulatory Alerts2022-09-29
Added · Updated
Circular No. 238: Non-Profit Companies System
The Palestine Monetary Authority requires banks operating in Palestine to implement measures ensuring that non-profit companies obtain the necessary approvals to receive funds in their bank accounts, in compliance with the Non-Profit Companies System (Law No. 20 of 2022). This system mandates that non-profit companies operate as private joint-stock companies, require a minimum of seven shareholders and five board members, and restrict the distribution of profits. It establishes strict reporting obligations, including annual financial reports and quarterly operational reports to the competent authority, and imposes a 25% cap on total salaries and operational expenses relative to the budget. Furthermore, the system introduces comprehensive anti-money laundering and counter-terrorist financing controls, requiring risk assessments, the identification of beneficial owners holding 25% or more equity, and the maintenance of detailed transaction records for ten years.