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2020-01-01

Circular No. 157/2020: Fraudulent Schemes

The Palestine Monetary Authority issued Circular No. 157/2020 to mandate money exchange companies in Palestine to implement enhanced due diligence, customer awareness, and internal reporting measures to combat emerging fraudulent schemes targeting citizens via social media and messaging platforms. The directive specifically warns against four prevalent scams, including the "frozen dollar" exchange trick, fake prize/aid activation fees, lottery scams, and extortion via compromised media, requiring exchangers to verify transfer purposes and reject transactions lacking mandated electronic data. Furthermore, the Authority requires immediate written notification of any suspected fraud incidents, whether completed or thwarted, to its AML-CFT department to mitigate money laundering and terrorist financing risks.

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (157/2020)

To All Money Exchange Companies Operating in Palestine

Date: Wednesday, July 29, 2020

Subject: Fraudulent Schemes

The Palestine Monetary Authority urges money exchangers to take necessary precautionary and protective measures to avoid the fraudulent schemes targeting citizens. It has been observed recently that some citizens have been victims of fraud and deception using several criminal methods by receiving messages or calls via communication and social media platforms from individuals residing outside the State of Palestine, urging them to do the following:

  1. Sending a money transfer for a specific amount to purchase US dollars at a price lower than the official exchange rate, in exchange for the fraudster's commitment to send a return money transfer worth more than the sent amount (i.e., the purchase price). This is known as the "Frozen Dollar Scam". For example: sending a transfer of $3,000 in exchange for receiving a transfer of $5,000. It should be noted that the fraudster may initially persuade the victim to send a small amount and then send a larger transfer to reassure the victim, after which they cut off communication.

  2. Sending a money transfer to "activate" the value of a transfer to be sent to them in the form of prizes or aid. The transfer receipt is often forged with the phrase "The transfer will not be delivered to the beneficiary until activated," and/or contacting citizens and defrauding them using fake social media pages bearing the names of prominent figures, including but not limited to: princes, princesses, and television show hosts.

  3. Sending a transfer to participate in a draw for large cash and in-kind prizes, and/or sending a transfer for a nominal amount to purchase a luxury car.

  4. Sending money transfers with the aim of extorting citizens out of fear that videos or recorded material of them will be published.

In line with the Palestine Monetary Authority's commitment to mitigating the risks of money laundering and terrorist financing, and to prevent citizens from falling victim to fraud and deception crimes, we reiterate the necessity of taking precautionary and protective measures to avoid citizens being exposed to these fraudulent schemes, which includes the following:

  1. Exercising due diligence to identify the purpose of the transfer and the financial relationship between the sender and the beneficiary, and supporting this with relevant documentation. Transfers shall not be executed if the electronic transfer data stipulated under National Committee Instructions No. (1/C) of 2017 are not fulfilled.

  2. Preparing awareness and educational leaflets for customers to mitigate the risks of fraudulent schemes, to be displayed at money exchange company offices and shared via the exchanger's social media channels.

  3. Enhancing the capacity of transfer staff regarding the risks of fraud crimes via communication and social media platforms, and strengthening and raising customer awareness of these risks prior to executing financial transfers.

  4. Fulfilling the reporting obligations stipulated under the provisions of Decree-Law No. (20) of 2015 on Combating Money Laundering and Terrorist Financing and the instructions issued thereunder.

  5. Notifying the Palestine Monetary Authority in writing of any operational incidents related to fraud against citizens, whether the transfer was executed or not, via the approved email address of the Anti-Money Laundering and Combating the Financing of Terrorism Department: AML-CFT@pma.ps

Supervision Group
Palestine Monetary Authority

Note:
www.pma.ps
Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Tel: +970 8 2825713

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