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2020-01-01

Instructions No. (29) of 2020 Regarding the Regulation of Money Changers Acting as Agents for Payment Service Providers

The Palestine Monetary Authority issued Instructions No. 29 of 2020 to regulate money changers operating as agents for payment service providers. The directive mandates that licensed corporate money changers must utilize qualified accounting software, maintain payment service balances at or below 25% of their capital, and notify the regulator within seven days of establishing service links. Non-compliance with these operational requirements subjects entities to penalties under the existing 2016 Money Changer Licensing and Supervision Decision.

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (29) of 2020

Regarding the Regulation of Money Changers Acting as Agents for Payment Service Providers

Based on the provisions of Decision No. (41) of 2016 Regarding the Licensing and Supervision System for the Money Changer Profession, and particularly Article (9) thereof,
and in the public interest,
and pursuant to the powers vested in us,
we have issued the following Instructions:

Article (1)

Objective and Scope of Application

  1. These Instructions aim to regulate the work of money changers as agents for payment service providers.
  2. The provisions of these Instructions apply to all money changers licensed by the Palestine Monetary Authority.

Article (2)

Acting as an Agent for a Payment Service Provider

A money changer may act as an agent for a payment service provider subject to the following conditions:

  1. Being licensed as a company.
  2. Having an accounting software qualified to record transactions related to payment services.
  3. Complying with the provisions of the Instructions governing the relationship between payment service companies and agents.
  4. Notifying the Palestine Monetary Authority within a maximum period of (7) seven days from the date of linking the service with the payment service provider.
  5. The balance used by the money changer in payment services must not exceed 25% of its capital.

Article (3)

Penalties

Anyone who violates the provisions of these Instructions shall be penalized in accordance with the provisions of Decision No. (41) of 2016 Regarding the Licensing and Supervision System for the Money Changer Profession.

Article (4)

Implementation and Enforcement

All competent authorities shall, each within their respective jurisdiction, implement the provisions of these Instructions, and they shall apply from the date of their issuance.

Issued in Ramallah on 27/08/2020

Financial Stability Group
Palestine Monetary Authority

Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 | Gaza - Palestine P.O. Box 4026
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Fax: +970 8 2844487 | Tel: +970 8 2825713
www.pma.ps

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