Regulatory Alerts2008-01-01
Circular No. 19: Opening Accounts for Foreign Companies
The Palestinian Monetary Authority issued Circular No. 19 to instruct all banks operating in Palestine to comply with Article 219 of the Companies Law No. 12 of 1964 by prohibiting the opening of accounts for foreign companies unless they are officially registered with the Companies Registrar. This directive implements a January 17, 2008 letter from the Ministry of National Economy’s Companies Registrar, which mandates that foreign joint-stock companies and foreign entities engaging in commercial activities must obtain registration and submit specific documentation, including certified charters, board member lists, and a resident power of attorney, before conducting business. Failure to comply with the registration requirement subjects the foreign company to a fine of up to 250 dinars, and banks are explicitly ordered to enforce this account-opening restriction immediately.