Regulatory Alerts2021-01-01
Instructions No. (2) of 2021 Regarding the Amendment of Instructions No. (1) of 2018 Concerning the Licensing of Payment Service Companies
The Palestine Monetary Authority issued Instructions No. (2) of 2021 to amend the licensing framework for payment service companies in Palestine. The directive caps the shareholding of any bank or telecommunications company in payment service companies at 49% of their capital and mandates that all licensed entities rectify their compliance status by December 31, 2021. These amendments, approved by the PMA Board on April 29, 2021, immediately repeal conflicting provisions and become effective upon issuance.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (2) of 2021
Regarding the Amendment of Instructions No. (1) of 2018 Concerning the Licensing of Payment Service Companies
Pursuant to the provisions of Decision-Law No. (17) of 2012 Concerning the National Payment Settlement Law, particularly Article (9) thereof, and after reviewing Instructions No. (1) of 2018 Concerning the Licensing of Payment Service Companies, and based on what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (234) dated 29/04/2021, and in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:
Article (1)
Definitions
The words and phrases contained in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:
Original Instructions: Instructions No. (1) of 2018 Concerning the Licensing of Payment Service Companies.
Article (2)
Scope of Application
The provisions of these Instructions shall apply to all licensed payment service companies providing payment services in Palestine.
Article (3)
Ownership in Payment Service Companies
The provisions of Article (15), paragraph (4) of the Original Instructions shall be replaced with the following text:
"The shareholding percentage of any bank or telecommunications company shall not exceed 49% of the capital of payment service companies."
Article (4)
Rectification of Status
Licensed payment service companies must rectify their status in accordance with the provisions of these Instructions within a maximum period ending on 31/12/2021.
Article (5)
Repeal of Conflicting Provisions
All provisions conflicting with these Instructions are hereby repealed.
Article (6)
Implementation and Enforcement
All competent authorities shall implement the provisions of these Instructions according to their respective jurisdictions, and these Instructions shall apply from the date of their issuance.
Issued in Ramallah on 19/05/2021 AD
Dr. Firas Malham
Governor
Note:
www.pma.ps
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
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