LogoRegulatory Alerts
2022-01-01

Circular No. 95: Regarding the Linkage and Inquiry of Natural Customer Identities on the Civil Registry

The Palestine Monetary Authority mandates all licensed payment service companies in Palestine to integrate with the Ministry of Interior's Civil Registry to verify customer identities and basic data during onboarding and whenever doubts arise. Companies must obtain explicit customer consent, restrict system access to compliance and operations personnel, and implement strict monitoring to prevent unauthorized data usage. The directive further establishes a monthly inquiry fee structure, requires immediate written reporting of fraud or misuse to the Authority's AML/CFT department, and explicitly prohibits passing inquiry costs to end customers.

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (95/2022)

To all payment service companies operating in Palestine

Date: Monday, April 18, 2022

Subject: Linkage and Inquiry of Natural Customer Identities on the Civil Registry

The Palestine Monetary Authority, committed to providing neutral and reliable sources and a centralized database to facilitate obtaining the necessary data for establishing and maintaining business relationships and accessing financial services, and to enable financial institutions to transition towards digital ID reliance in the future, and to enhance the anti-money laundering and counter-terrorist financing environment, mitigate risks to financial institutions, achieve electronic Know Your Customer (KYC) requirements, and contribute to identifying and verifying customer identities and the integrity of basic data in alignment with FATF Recommendation No. (10), has signed a Memorandum of Understanding with the Palestinian Ministry of Interior to enable supervised financial institutions to inquire about citizens' basic identity data on the Civil Registry. In this regard, payment service companies are requested to take the necessary immediate steps to utilize the inquiry service provided via the information systems link at the Palestine Monetary Authority.

First: Inquiry on the Civil Registry.

  1. Payment service companies must take adequate measures to inquire about customer identities and basic data from the Civil Registry, at a minimum upon relationship establishment and whenever there is doubt regarding the accuracy of customer identity data.

  2. Obtain customer authorization to inquire about their identities and basic data on the Civil Registry.

  3. The inquiry report response regarding a citizen's identity number on the Civil Registry shall include the citizen's photograph and basic data, specifically: (Personal ID number, first name, father's name, grandfather's name, family name, mother's name, date of birth, place of birth, gender, marital status, religion, place of issue, date of issue, vital status "alive or deceased", spouse's name, spouse's ID number, names of minor children and their ID numbers).

  4. Customer identity and basic data inquiries from the Ministry of Interior's Civil Registry shall be conducted by following these steps:

    • Access the Credit Information Systems link.
    • Enter username and password.
    • Click the Ministry of Interior inquiry icon.
    • Click Ministry of Interior inquiry data.
    • Enter the customer's personal ID number and full four-part name.
    • Click Execute Ministry of Interior inquiry to process the request.

  5. The Civil Registry inquiry response shall be saved within the customer's file.

Second: Granting Permissions.

The company shall take the necessary actions for the following:

  1. Grant inquiry permissions for customer identities and basic data to employees working in operations, compliance, and anti-money laundering/counter-terrorist financing roles.
  2. Submit a written request to the Financial Stability Department at the Palestine Monetary Authority to provision inquiry permissions for employees in the aforementioned roles on the Authority's Credit Information Office systems.
  3. Suspend inquiry permissions for any employee whose employment is terminated, resignation is accepted, or who is transferred to a role that does not require such permissions.

Third: Monitoring Inquiry Operations.

Each company is fully responsible for monitoring the inquiry operations conducted by its employees on the Civil Registry to ensure the confidentiality of customer and citizen data, and to prevent misuse of permissions for unauthorized purposes, by utilizing the report provided for this purpose titled "Report on Executed Inquiries".

Fourth: Notification to the Anti-Money Laundering and Counter-Terrorist Financing Department.

Company management must notify the AML/CFT Department at the Palestine Monetary Authority in writing and immediately via the department's official email AML-CFT@PMA.PS upon becoming aware of any of the following situations:

  1. Any employee misuse of granted permissions, along with administrative and disciplinary measures taken or to be taken regarding the matter.
  2. Fraud, forgery, or counterfeiting crimes involving the personal ID card image or its data following the Civil Registry inquiry.
  3. Inquiries regarding Palestinian ID numbers that do not exist on the Civil Registry.
  4. Notification to relevant official authorities regarding cases of fraud, forgery, counterfeiting, invalidity of personal ID card data or the photographed individual on the inquiry system, and/or absence of Civil Registry data for the inquired personal ID number; accompanied by copies of police reports and supporting documents.

Fifth: Inquiry Fees.

  1. An inquiry fee shall be charged to the payment service company for each inquiry transaction.

  2. Payment service companies are granted a monthly trial period during which a fee of one shekel is charged per inquiry transaction, until June 30, 2022.

  3. The Palestine Monetary Authority shall reconcile inquiry statements and records with the Ministry of Interior, and subsequently issue a written demand to payment service companies to settle monthly inquiry fees into the Authority's account at Cairo Amman Bank for the benefit of the Ministry of Finance. Fees shall be settled within a maximum period of the first week of the following month, via internal transfer or financial remittance to the specified account per the Authority's demand.

  4. Payment service companies must promptly notify the Palestine Monetary Authority in writing via email at aabujaber@pma.ps confirming the settlement of monthly fees.

  5. Payment service companies are prohibited from passing on any direct or indirect fees, commissions, or additional charges to customers resulting from Civil Registry inquiry transactions.

Supervisory Group

Palestine Monetary Authority

Copy: Respected Ministry of Interior

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

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