Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (2018/236)

To all bankers operating in Palestine

Date: Monday, 29 October 2018

Subject: High-Risk Countries and Countries Under an Action Plan for Improving Compliance with International Standards

Attached is a copy of Decision No. (2018/3) issued by the Financial Follow-Up Unit on 23/10/2018 regarding High-Risk Countries and Countries Under an Action Plan for Improving Compliance with International Standards, according to the list issued by the Financial Action Task Force (FATF).

Accordingly, all bankers operating in Palestine are requested to take the necessary legal measures to implement the requirements of the aforementioned decision and the specific measures that must be taken.

Dr. Sami
Supervision and Inspection Department
Palestine Monetary Authority

Copy: To the esteemed 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 | Phone: +970 2 2415250 | P.O. Box 452 - Ramallah - Palestine Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Fax: +970 8 2844487 | Phone: +970 8 2825292 | P.O. Box 4026 - Gaza - Palestine 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 23/October/2018

Regarding High-Risk Countries and Countries Under an Action Plan for Improving Compliance with International Standards

Based on the provisions of Legislative Decree No. (20) of 2015 regarding the prevention of money laundering and terrorist financing and its amendments, particularly paragraph (16) of Article (20), And pursuant to Decision No. (8/J/2016) of the National Committee for Combating Money Laundering and Terrorist Financing, issued on 01/12/2016, regarding the delegation to the Financial Follow-Up Unit to publish the list of high-risk countries issued periodically by the Financial Action Task Force (FATF), And in addition to Decision No. (6/J/2016) of the National Committee for Combating Money Laundering and Terrorist Financing, 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, the following is decided:

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 they shall be handled 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 state of North Korea.
Iran	Continue to apply enhanced due diligence measures regarding business relationships with the state of Iran, including financial transactions executed from or to it, whether for natural or legal persons, and take into account supervisory relationships with financial institutions operating and licensed in Iran, in accordance with the provisions of Legislative Decree No. (20) of 2015 regarding the prevention of money laundering and terrorist financing and its amendments, the instructions issued thereunder, and Recommendation No. (19) issued by the Financial Action Task Force.

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

Financial Follow-Up Unit

State of Palestine

Financial Follow-Up Unit
State of Palestine

Second: Countries Under an Action Plan for Improving Compliance with International Standards

The following countries are under an action plan for improving compliance with international standards related to anti-money laundering and counter-terrorist financing, and they shall be handled according to the following specifications:

Country Name	Required Measures
Commonwealth of The Bahamas (Bahamas Islands)	Given that this country received a high rating for addressing strategic deficiencies, all financial institutions must apply ongoing due diligence measures regarding business relationships with this country, including financial transactions executed from or to it, to verify the purposes of the executed financial transactions and identify the sources of funds, in accordance with Legislative Decree No. (20) of 2015 regarding the prevention of money laundering and terrorist financing and the instructions issued thereunder.
Republic of Botswana
Ghana
Serbia
Pakistan
Syria
Sri Lanka
Ethiopia
Yemen
Tunisia
Trinidad and Tobago

Third: Obligations of Financial Institutions

All financial institutions operating in Palestine are required to adopt the measures specified in the tables outlined in Items (First) and (Second) of this Decision.

Fourth: Update

This Decision constitutes an update to Financial Follow-Up Unit Decision No. (2018/2) regarding high-risk countries and/or countries not fully compliant with anti-money laundering and counter-terrorist financing standards, issued on 10/July/2018.

Fourth: Implementation

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

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

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