Regulatory Alerts2019-01-01
Decision No. 1 of 2019 on High-Risk Jurisdictions and Jurisdictions Under Increased Monitoring
The Financial Follow-Up Unit of the State of Palestine, via Decision No. 1 of 2019 and Circular No. 52 of 2019, mandates all Palestinian financial institutions to enforce enhanced due diligence and transaction prohibitions against jurisdictions identified by the FATF as high-risk or under increased monitoring. The decision explicitly prohibits all financial dealings with North Korea, requires enhanced due diligence for Iran, and imposes ongoing due diligence and source-of-funds verification for The Bahamas, while listing Botswana, Ghana, Serbia, Pakistan, Syria, Sri Lanka, Ethiopia, Yemen, Tunisia, Trinidad and Tobago, and Cambodia under increased monitoring. Financial institutions are legally obligated to implement these measures immediately, updating previous directives from October 2018 and aligning domestic compliance with FATF Recommendation 19 and Palestinian Anti-Money Laundering Law No. 20 of 2015.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2019/52) To all financial institutions operating in Palestine Date: Wednesday, 27 February 2019
Subject: High-Risk Jurisdictions and Jurisdictions Under Increased Monitoring of Compliance with International Standards
Attached is a copy of Decision No. (2019/1) issued by the Financial Follow-Up Unit on 25/02/2019 regarding high-risk jurisdictions and jurisdictions under increased monitoring of compliance with international standards, in accordance with the list issued by the Financial Action Task Force (FATF).
Accordingly, all financial institutions operating in Palestine are requested to take the necessary legal measures to implement the requirements of the aforementioned decision and the corresponding measures to be taken.
Supervision and Coverage Department Palestine Monetary Authority
Copy: The respected gentlemen/ Financial Follow-Up Unit
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
Financial Follow-Up Unit State of Palestine
Decision No. (2019/1) Issued by the Financial Follow-Up Unit On 25 February 2019
REGARDING HIGH-RISK JURISDICTIONS AND JURISDICTIONS UNDER INCREASED MONITORING OF COMPLIANCE WITH INTERNATIONAL STANDARDS
Pursuant to the provisions of Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, particularly Paragraph (16) of Article (20), And based on Decision No. (8/J/4/2016) of the National Committee for Combating Money Laundering and the Financing of Terrorism issued on 01/12/2016 regarding delegating the Financial Follow-Up Unit to publish a list of high-risk jurisdictions on a periodic basis, And subsequently following the determinations made by the FATF on 22/02/2019, And in reference to Decision No. (6/J/3/2016) of the National Committee for Combating Money Laundering and the Financing of Terrorism issued on 01/08/2017 regarding the prohibition of financial transactions with the Democratic People's Republic of Korea, And based on public interest requirements, it is decided as follows:
First: High-Risk Jurisdictions
The following jurisdictions are considered high-risk due to strategic deficiencies concerning anti-money laundering and counter-terrorist financing standards, and shall be treated according to the following specifications:
| Country Name | Required Measures |
|---|---|
| Democratic People's Republic of Korea (North Korea) | All financial institutions are prohibited from conducting financial transactions with the Democratic People's Republic of Korea. |
| Iran | Continue to apply enhanced due diligence measures regarding business relationships with Iran, including financial transactions executed from or to Iran, whether for natural or legal persons, and take into account correspondent banking relationships with public and licensed financial institutions in Iran, in accordance with the provisions of Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, the instructions issued thereunder, and FATF Recommendation No. 19. |
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State of Palestine – Al Bireh P.O.Box 3981 Tel: 0097022967401/2 | Fax: 0097022967426 E-mail: info@ffu.ps | www.ffu.ps
Financial Follow-Up Unit State of Palestine
Second: Jurisdictions Under Increased Monitoring of Compliance with International Standards
The following jurisdictions are under increased monitoring of compliance with international standards related to anti-money laundering and counter-terrorist financing, and shall be treated according to the following specifications:
| Country Name | Required Measures |
|---|---|
| Commonwealth of The Bahamas | Given that country's political commitment to address strategic deficiencies, all financial institutions must apply ongoing due diligence measures regarding business relationships with that country, including financial transactions executed from or to that country, to verify the purposes of the transactions and the source of funds, in accordance with Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its amendments, and the instructions issued thereunder. |
| Republic of Botswana | |
| Ghana | |
| Serbia | |
| Pakistan | |
| Syria | |
| Sri Lanka | |
| Ethiopia | |
| Yemen | |
| Tunisia | |
| Trinidad and Tobago | |
| Cambodia |
Third: Obligations of Financial Institutions
All financial institutions operating in Palestine shall implement the measures specified in the tables in Items (First) and (Second) of this Decision.
Fourth: Update
This Decision updates Financial Follow-Up Unit Decision No. (2018/3) regarding high-risk and/or non-compliant jurisdictions concerning anti-money laundering and counter-terrorist financing standards, issued on 23 October 2018.
Fifth: Implementation
All relevant authorities shall implement the provisions of this Decision, which shall take effect from the date of its issuance.
Director of the Financial Follow-Up Unit A. Wael Levy
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State of Palestine – Al Bireh P.O.Box 3981 Tel: 0097022967401/2 | Fax: 0097022967426 E-mail: info@ffu.ps | www.ffu.ps