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2020-01-01

Circular No. 203 (2020): Measures to be Taken Regarding Persons Prohibited from Dealing

The Palestine Monetary Authority issued Circular No. 203 (2020) mandating all exchange companies operating in Palestine to immediately implement strict controls prohibiting transactions with individuals suspected of money laundering predicate offenses such as fraud and extortion. The directive requires companies to integrate internal and official local and international blocking lists into their accounting systems, automate transaction alerts, enhance employee due diligence training, and fulfill mandatory reporting obligations under Law No. 20 of 2015. Additionally, exchange firms must notify the Authority in writing of any operational incidents linked to these crimes via the designated AML-CFT department email.

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (2020/203)
To all exchange companies operating in Palestine
Date: Thursday, October 22, 2020

Subject: Measures to be Taken Regarding Persons Prohibited from Dealing

In line with the Palestine Monetary Authority's commitment to mitigating the risks of money laundering and terrorist financing, and in follow-up to circulars issued regarding criminal methodologies and circulars mandating blocking, cautionary, and precautionary measures to refrain from dealing with certain persons suspected of committing criminal methods (fraud, extortion) that fall under the predicate offenses of money laundering as stipulated in Article (3) of Law No. (20) of 2015 on Combating Money Laundering and Terrorist Financing and its amendments, we reiterate the necessity of taking immediate measures and controls to ensure non-dealing with these persons and/or executing financial transactions on their behalf, including:

  1. Disseminate the names of persons prohibited from dealing to company employees.
  2. Input the data of persons prohibited from dealing into the company's internal blocking and freezing lists configured on the accounting system immediately upon receipt, and configure the accounting system to issue automated alerts that prevent the completion of any future financial transactions on behalf of these persons.
  3. Refrain from executing domestic, international, and instant financial transfers before registering them on the accounting system and automatically querying the names of customers and beneficiaries of such transfers against the company's internal blocking lists and the local and international blocking and freezing lists in force in the State of Palestine.
  4. Enhance and strengthen employee capabilities in applying due diligence procedures to identify the financial relationship and purpose of financial transfers, and take the measures stipulated under Circular

(2020/157), including raising awareness among employees and customers regarding the risks of criminal methodologies, and working to disseminate information on these methodologies at company premises and through the exchange company's social media channels. 5. Fulfill the reporting obligations stipulated under the provisions of Law No. (20) of 2015 on Combating Money Laundering and Terrorist Financing and the instructions issued pursuant thereto. 6. Notify the Palestine Monetary Authority in writing of operational events related to those crimes, 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:
Ramallah and Al-Bireh - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Gaza - Palestine P.O. Box 4026
www.pma.ps

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