Instructions No. (1) of 2023 on the E-Money Guarantee Account

[Logo of the Palestine Monetary Authority]

Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

Instructions No. (1) of 2023 on the E-Money Guarantee Account

Based on the provisions of Law Decree No. (41) of 2022 concerning National Payments, particularly Articles (9 and 18) thereof, and the decision of the Board of Directors of the Palestine Monetary Authority in its meeting No. (258) dated 2023/01/25 and in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:

Article (1) Definitions

The words and expressions used in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

• E-Money: Electronic monetary value representing an obligation of the issuer, issued in exchange for funds for the purpose of executing payment orders among users of payment services.
• Payment Services: The services determined by the Palestine Monetary Authority relating to sending, receiving, and executing payment orders in circulating currencies, including issuing and managing payment instruments and operating payment systems.
• E-Money Guarantee Account: The account opened by the Company with any of the banks licensed by the Palestine Monetary Authority to cover the outstanding balance of e-money issued by the Company in accordance with the conditions determined by the Palestine Monetary Authority.
• The Company: A payment services company registered in accordance with the provisions of the Law and licensed to provide payment services, including issuing e-money.
• User of E-Money: A natural or legal person who uses e-money as a payer or payee, including agents and merchants.

Page 1 of 4

[Logo of the Palestine Monetary Authority]

Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

Article (2) Objective and Scope of Application

1. The provisions of these Instructions aim to specify the conditions and terms regarding the E-Money Guarantee Account.
2. The provisions of these Instructions apply to all companies licensed by the Palestine Monetary Authority to provide payment services.

Article (3) E-Money Guarantee Account

1. The Company shall open an account with one of the banks licensed by the Palestine Monetary Authority, named "E-Money Guarantee Account", after obtaining prior approval from the Palestine Monetary Authority for the account opening agreement, subject to the following: a. Depositing all funds received from e-money users into the E-Money Guarantee Account. b. The balance of the E-Money Guarantee Account shall at all times not be less than the outstanding e-money issued to users of e-money, including agents and merchants. c. Using the E-Money Guarantee Account to settle outgoing and incoming financial transactions of e-money. d. The E-Money Guarantee Account shall be opened in the same currency as the issued e-money. e. Charging any commissions or fees related to the E-Money Guarantee Account to the Company's other accounts.
2. The Company may transfer any credited interest on the E-Money Guarantee Account to its other accounts.

Article (4) Statements and Financial Reports

The Company shall comply with the following:

1. Providing the Palestine Monetary Authority with a bank-certified statement and an e-money issuance report issued by the Company's systems on a monthly basis, no later than the fifth working day of each month, or any other time determined by the Palestine Monetary Authority.
2. Separating the Company's funds from the E-Money Guarantee Account funds accountingly, in financial statements and related notes, while complying with International Financial Reporting Standards.
3. The E-Money Guarantee Account shall be subject to review and audit by the Company at the end of each working day.

Page 2 of 4

[Logo of the Palestine Monetary Authority]

Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

Article (5) Enforcement against the E-Money Guarantee Account

1. The E-Money Guarantee Account shall not be subject to enforcement against any debts, liabilities, or rights arising from the Company, except for debts and liabilities specific to e-money users.
2. The E-Money Guarantee Account shall not serve as security for any facilities, financing, or obligations of the Company or any other person.

Article (6) Termination, Bankruptcy, or Liquidation

1. The E-Money Guarantee Account is exempt from the termination, bankruptcy, or liquidation procedures of the Company or the bank holding the E-Money Guarantee Account, as determined by the provisions of the Law.
2. The Palestine Monetary Authority may dispose of the balances available in the E-Money Guarantee Account and take appropriate measures to return funds to users if the Company is unable to meet its obligations or if the bank holding the E-Money Guarantee Account is liquidated.

Article (7) Repeal of Conflicting Provisions

1. Article (5) of Instructions No. (3) of 2021 concerning the provision of e-wallet services by payment service companies is repealed, subject to the Company rectifying its status in accordance with Article (8) of these Instructions.
2. All provisions conflicting with these Instructions are repealed.

Page 3 of 4

[Logo of the Palestine Monetary Authority]

Palestine Monetary Authority PALESTINE MONETARY AUTHORITY

Article (8) Rectification of Status

The Company shall rectify its legal status in accordance with these Instructions within a maximum period of (6) six months from the date of issuance.

Article (9) Implementation and Enforcement

All competent authorities shall implement the provisions of these Instructions, each within its respective jurisdiction, and they shall apply from the date of their issuance. Issued in Ramallah on: 2023/01/31.

Dr. Firas Malham Governor [Signature]

Page 4 of 4