Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (2022/162)
To all exchangers operating in Palestine
Date: Wednesday, July 27, 2022

Subject: Combating Counterfeiting and Forgery Crimes

Committed to combating counterfeiting and forgery crimes, and aiming to mitigate the risks of money laundering and terrorist financing as well as any potential risks, we emphasize the necessity of adhering to the following preventive measures and procedures when executing customers' financial transactions:

First: Counterfeiting and Forgery of Currency

1. Verify the integrity and authenticity of banknotes using machines capable of counting and inspecting security features on banknotes in accordance with the requirements of Circular (2022/125).

2. Raise employee awareness and alert them that some individuals circulate banknotes bearing the same serial number, as these are forged and printed using scanner technology.

Second: Forgery of Security-Rich Checks

1. Provide devices capable of inspecting the security features and rich specifications on purchased check paper using ultraviolet (UV) light.

2. Train employees on the security levels used in printing security-rich checks, and document indicators pointing to forgery attempts involving manipulation and erasure (manual, using acids, or using chemical substances) on the check paper surface, as well as attempts to remove basic editable content elements of the check. These indicators are as follows:

• Reaction of inks on the check paper surface due to manipulation and erasure, resulting in stippling (black spots/dots) across various areas of the check, color changes, and the check turning pale.

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Tampering with graphics in areas of editable check elements (payee name, amount in numbers and words, signature, and date), such that the background of those elements becomes white.

• Failure to display and distribute hairs, shapes, geometric patterns, and secret ink lines when the check paper surface is exposed to UV light.

• Failure to display the VOID watermark when photographing the check paper due to chemical reactions.

Third: Preventive and Legal Measures

1. Exchangers and their employees are prohibited from returning suspected counterfeit or forged banknotes and checks to customers, or even destroying them by perforating, scratching, or writing on them.

2. Educate customers on how to identify and detect security features in banknotes circulating in the State of Palestine, and work on distributing awareness brochures at branches and through the exchanger's social media channels.

3. Do not execute any financial transactions for customers in the following cases:

• Doubt or suspicion regarding the validity of customers' identification documents.

• Doubt or suspicion of concealment and/or hiding of facial and physical characteristics, which affects camera recordings and the integrity of natural person identity verification procedures. Examples include: wearing sunglasses and hats, etc.

• Suspicion of abnormal behavior and conduct by clients inside exchanger branches, such as: signs of panic and fear, excessive tension and nervousness, constant phone usage, etc.

4. Do not hesitate to take the necessary legal action to combat these crimes, which includes:

• Reporting to the General Security and handing over the original suspected counterfeit or forged banknotes.

• Reporting to the Public Prosecution and handing over the original suspected counterfeit or forged checks.

• Reporting to the Financial Follow-up Unit via the GoAML program.

5. Notify the Anti-Money Laundering and Counter-Terrorist Financing Department at the Palestine Monetary Authority in writing of the legal action taken, via the department's email address: AML-CFT@PMA.PS

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Supervision Department
Palestine Monetary Authority

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Ramallah & 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 www.pma.ps