Regulatory Alerts2021-01-01
Circular No. 66: Risks Associated with Real Estate Payment Transactions
The Palestine Monetary Authority issued Circular No. 66 mandating all banks operating in Palestine to strictly enforce risk-based approaches and enhanced due diligence measures for real estate payment transactions to mitigate money laundering and terrorist financing risks. Banks must update their self-assessment processes to explicitly account for real estate sector threats, verify the legitimacy of funds intended for property purchases, and secure comprehensive supporting documentation. The directive explicitly prohibits accepting anonymous funds or deposits and warns against relying solely on documents that merely clarify relationships between transaction parties.
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