Regulatory Alerts2025-01-01
Palestine Monetary Authority Circular No. 60/2020 on Murabaha-Based Tawarruq Product Regulations
The Palestine Monetary Authority issued Circular No. 60/2020 to regulate Islamic banks' use of the Tawarruq product, restricting its application to specific liquidity crises and debt settlements where other financing forms are unavailable. The circular mandates that Tawarruq financing must not exceed 10% of a bank's total financing portfolio and requires strict adherence to Shariah Standard No. 30 and internal compliance frameworks. Banks wishing to utilize this product must obtain prior approval from the Authority by submitting approved policies, procedures, and contracts.
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