Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (2018/239)

To all banks operating in Palestine
Date: Monday, October 29, 2018

Subject: High-Risk Countries and Countries Under Enhanced Monitoring for Compliance with International Standards

Attached is a copy of Decision No. (2018/3) issued by the Financial Follow-Up Unit on October 23, 2018, regarding High-Risk Countries and Countries Under Enhanced Monitoring for Compliance with International Standards, in accordance with the list issued by the Financial Action Task Force (FATF).

Accordingly, all banks 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.

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Supervision and Inspection Department
Palestine Monetary Authority

Copy: The respected gentlemen / Financial Follow-Up Unit

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www.pma.ps

Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2415310 | Fax: +970 2 2415310 | Tel: +970 2 2415250 | Ramallah - Palestine P.O. Box 452 Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Fax: +970 8 2844487 | Tel: +970 8 2825292 | Gaza - Palestine P.O. Box 4026 Email: info@pma.ps | Email: info@pma.ps

Financial Follow-Up Unit

State of Palestine

Financial Follow-Up Unit

State of Palestine

Decision No. (2018/3)

Issued by the Financial Follow-Up Unit
Dated October 23, 2018

Regarding High-Risk Countries and Countries Under Enhanced Monitoring for Compliance with International Standards

Pursuant to Article 20(16) of Decision-Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, Based on Decision No. (2016/4ج/8) of the National Committee for Combating Money Laundering and the Financing of Terrorism issued on December 1, 2016, regarding the delegation to the Financial Follow-Up Unit to publish the list of high-risk countries periodically issued by the Financial Action Task Force (FATF), In continuation of Decision No. (2016/3ج/6) of the National Committee for Combating Money Laundering and the Financing of Terrorism issued on August 1, 2017, regarding the prohibition of financial transactions with the Democratic People's Republic of Korea, And in light of public interest requirements, it is decided as follows:

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First: High-Risk Countries

The following countries 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 North Korea.
Iran	Continue applying enhanced due diligence measures regarding business relationships with Iran, including financial transactions executed from or to Iran for the benefit of natural or legal persons, and consider correspondent banking relationships with public and licensed financial institutions in Iran, in accordance with the provisions of Decision-Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, and the instructions issued with its approval, and with FATF Recommendation No. (19).

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State of Palestine – Al Birih P.O. Box 3981 | State of Palestine – P.O. Box 3981 Tel: 0097022967401/2 | Fax: 0097022967426 | Tel: 0097022967401/2 | Fax: 0097022967426

Financial Follow-Up Unit

State of Palestine

Financial Follow-Up Unit

State of Palestine

Second: Countries Under Enhanced Monitoring for Compliance with International Standards

The following countries are under enhanced monitoring for compliance with international standards related to combating money laundering and the financing of terrorism, and shall be treated according to the following specifications:

Country Name	Required Measures
Commonwealth of The Bahamas (Bahamas Islands)	Given that these countries have submitted a contextual commitment to address strategic deficiencies, all financial institutions must apply ongoing enhanced due diligence measures regarding business relationships with these countries, including financial transactions executed from or to these countries, to verify the purposes of the transactions and identify the source of funds, in accordance with Decision-Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, and the instructions issued with its approval.
Republic of Botswana
Ghana
Serbia
Pakistan
Syria
Sri Lanka
Angola
Yemen
Tunisia
Trinidad and Tobago

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Third: Obligations of Financial Institutions

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

Fourth: Update

This Decision serves as an update to Financial Follow-Up Unit Decision No. (2018/2) regarding High-Risk and/or Non-Compliant Countries concerning anti-money laundering and counter-terrorist financing standards, issued on July 10, 2018.

Fifth: Implementation

All competent authorities are required to implement the provisions of this Decision, which shall take effect from the date of its issuance.

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Director of the Financial Follow-Up Unit
Awad Al-Afi

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State of Palestine – Al Birih P.O. Box 3981 | State of Palestine – P.O. Box 3981 Tel: 0097022967401/2 | Fax: 0097022967426 | Tel: 0097022967401/2 | Fax: 0097022967426