Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (2019/52)
To all financial institutions operating in Palestine Date: Wednesday, 27 February 2019

Subject: High-Risk Jurisdictions and Jurisdictions Under Increased Monitoring of Compliance with International Standards

Attached is a copy of Decision No. (2019/1) issued by the Financial Follow-Up Unit on 25/02/2019 regarding high-risk jurisdictions and jurisdictions under increased monitoring of compliance with international standards, in accordance with the list issued by the Financial Action Task Force (FATF).

Accordingly, all financial institutions operating in Palestine are requested to take the necessary legal measures to implement the requirements of the aforementioned decision and the corresponding measures to be taken.

Supervision and Coverage Department
Palestine Monetary Authority

Copy: The respected gentlemen/ Financial Follow-Up Unit

www.pma.ps

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

Financial Follow-Up Unit
State of Palestine

Decision No. (2019/1)
Issued by the Financial Follow-Up Unit
On 25 February 2019

REGARDING HIGH-RISK JURISDICTIONS AND JURISDICTIONS UNDER INCREASED MONITORING OF COMPLIANCE WITH INTERNATIONAL STANDARDS

Pursuant to the provisions of Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, particularly Paragraph (16) of Article (20), And based on Decision No. (8/J/4/2016) of the National Committee for Combating Money Laundering and the Financing of Terrorism issued on 01/12/2016 regarding delegating the Financial Follow-Up Unit to publish a list of high-risk jurisdictions on a periodic basis, And subsequently following the determinations made by the FATF on 22/02/2019, And in reference to Decision No. (6/J/3/2016) of the National Committee for Combating Money Laundering and the Financing of Terrorism issued on 01/08/2017 regarding the prohibition of financial transactions with the Democratic People's Republic of Korea, And based on public interest requirements, it is decided as follows:

First: High-Risk Jurisdictions

The following jurisdictions are considered high-risk due to strategic deficiencies concerning anti-money laundering and counter-terrorist financing standards, and shall be treated according to the following specifications:

Country Name	Required Measures
Democratic People's Republic of Korea (North Korea)	All financial institutions are prohibited from conducting financial transactions with the Democratic People's Republic of Korea.
Iran	Continue to apply enhanced due diligence measures regarding business relationships with Iran, including financial transactions executed from or to Iran, whether for natural or legal persons, and take into account correspondent banking relationships with public and licensed financial institutions in Iran, in accordance with the provisions of Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, the instructions issued thereunder, and FATF Recommendation No. 19.

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State of Palestine – Al Bireh P.O.Box 3981
Tel: 0097022967401/2 | Fax: 0097022967426
E-mail: info@ffu.ps | www.ffu.ps

Financial Follow-Up Unit
State of Palestine

Second: Jurisdictions Under Increased Monitoring of Compliance with International Standards

The following jurisdictions are under increased monitoring of compliance with international standards related to anti-money laundering and counter-terrorist financing, and shall be treated according to the following specifications:

Country Name	Required Measures
Commonwealth of The Bahamas	Given that country's political commitment to address strategic deficiencies, all financial institutions must apply ongoing due diligence measures regarding business relationships with that country, including financial transactions executed from or to that country, to verify the purposes of the transactions and the source of funds, in accordance with Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, and the instructions issued thereunder.
Republic of Botswana
Ghana
Serbia
Pakistan
Syria
Sri Lanka
Ethiopia
Yemen
Tunisia
Trinidad and Tobago
Cambodia

Third: Obligations of Financial Institutions

All financial institutions operating in Palestine shall implement the measures specified in the tables in Items (First) and (Second) of this Decision.

Fourth: Update

This Decision updates Financial Follow-Up Unit Decision No. (2018/3) regarding high-risk and/or non-compliant jurisdictions concerning anti-money laundering and counter-terrorist financing standards, issued on 23 October 2018.

Fifth: Implementation

All relevant authorities shall implement the provisions of this Decision, which shall take effect from the date of its issuance.

Director of the Financial Follow-Up Unit
A. Wael Levy

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State of Palestine – Al Bireh P.O.Box 3981
Tel: 0097022967401/2 | Fax: 0097022967426
E-mail: info@ffu.ps | www.ffu.ps