Regulatory Alerts2022-01-01
Circular No. 125/2022 for Exchangers: Counting and Checking Banknotes
The Palestine Monetary Authority issued Circular No. 125/2022 mandating all licensed exchangers in Palestine to immediately implement strict banknote counting and verification protocols to combat counterfeiting and mitigate money laundering and terrorist financing risks. The circular requires exchangers to install, regularly maintain, and calibrate banknote counting machines that can detect all denominations, identify forged or damaged notes, and utilize infrared, ultraviolet, watermark, and magnetic security features. Additionally, staff must undergo specialized anti-counterfeiting training, suspected forged notes must be reported and surrendered to authorities, and exchangers are prohibited from dispensing old currency issues while cooperating with the public on security feature verification.
[Logo of the Palestine Monetary Authority]
PALESTINE MONETARY AUTHORITY
Circular No. (125/2022) To All Exchangers Operating in Palestine Date: Sunday, June 05, 2022
Subject: Counting and Checking Banknotes
Based on Palestine Monetary Authority Instruction No. (2012/04), and in our commitment to combat the phenomenon of counterfeiting and forging banknotes, and to mitigate the risks of money laundering and terrorist financing, as well as any potential risks, we emphasize the necessity of taking the following immediate measures:
- Provide a machine for counting and checking banknotes before currency exchange and executing financial transfers.
- Regularly maintain and calibrate the specifications of banknote counting and checking machines, and ensure the machines are aligned with the security and technical specifications of new issues of currencies circulating in Palestine.
- The specifications of machines for counting and checking circulating banknotes must be capable of achieving the following features: a. Count all denominations of a single currency. b. Detect forged and counterfeit banknotes. c. Sort out damaged banknotes. d. Inspect the security marks and specifications of banknotes using infrared, ultraviolet, watermarks, and magnetic detection. e. The ability to document inspected transactions via detection devices using computers, including generating reports related to executed banknote inspection operations.
- Enhance staff capabilities by enrolling them in specialized courses on counterfeiting and forgery detection.
- Take the necessary legal measures to combat currency forgery and counterfeiting crimes, including notifying the General Security and handing over the original suspected counterfeit or forged banknotes to them, and notifying the Follow-up Unit.
- Accept all currently valid issues of circulating banknote denominations in Palestine, without providing customers with any banknote denominations of old issues.
1 www.pma.ps Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452 | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825713 | Fax: +970 8 2844487
PALESTINE MONETARY AUTHORITY
- Cooperate with citizens wishing to check banknotes in their possession to verify the integrity and authenticity of their security features.
- Notify the Anti-Money Laundering and Combating the Financing of Terrorism Department at the Palestine Monetary Authority in writing regarding the implementation of legal measures, via the department's approved email: AML-CFT@PMA.PS
Supervision Group Palestine Monetary Authority
Copy to: The Honorable Members / Follow-up Unit
2 www.pma.ps Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452 | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825713 | Fax: +970 8 2844487