Regulatory Alerts2020-01-01
Instructions No. 31 of 2020 Regarding the Handling of Customer Accounts
The Palestine Monetary Authority issued Instructions No. 31 of 2020 to prohibit licensed banks in Palestine from closing customer accounts, refusing to open new accounts, or transferring customer balances to intermediary accounts. These prohibitions apply subject to existing anti-money laundering and terrorist financing regulations, as well as prior banking secrecy and account management directives. The Instructions mandate immediate implementation by all relevant authorities effective from their issuance date on August 27, 2020.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (31) of 2020
Regarding the Handling of Customer Accounts
Based on the provisions of Decree-Law No. (9) of 2010 concerning Banks, particularly Articles (43) and (72) thereof, and after reviewing Instructions No. (08) of 2009 concerning the opening and closing of accounts, dormant accounts, banking secrecy, transfers, and safe deposit boxes, and in accordance with the authorities vested in us, and in pursuit of the public interest, we have issued the following Instructions:
Article (1)
Scope of Application
The provisions of these Instructions shall apply to all banks licensed to operate in Palestine.
Article (2)
Handling of Customer Accounts
Subject to the provisions of Decree-Law No. (20) of 2015 concerning the prevention of money laundering and terrorist financing and its amendments, as well as the instructions issued in accordance therewith, and the provisions of Article (1/8) of Instructions No. (08) of 2009 concerning the opening and closing of accounts, dormant accounts, banking secrecy, transfers, and safe deposit boxes, a bank is prohibited from doing any of the following:
- Closing customer accounts (individuals, companies, institutions, associations).
- Refusing to open accounts for customers.
- Transferring customer account balances to intermediary accounts.
Article (3)
Implementation and Enforcement
All competent authorities shall implement the provisions of these Instructions according to their respective jurisdictions, and they shall apply from the date of their issuance.
Issued in Ramallah on 27/08/2020 AD
Financial Stability Group Palestine Monetary Authority
Note: At the bottom of the page, contact information for the Authority is provided:
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Phone: +970 2 2415251 | Tel:
Gaza - Palestine P.O. Box 4026 Gaza - Palestine P.O. Box 4026