Regulatory Alerts2019-01-01
Decision No. (2019/1) of the Financial Follow-Up Unit on High-Risk and Monitored Countries
The Financial Follow-Up Unit of the State of Palestine issued Decision No. (2019/1) to designate specific jurisdictions as high-risk or under increased monitoring for anti-money laundering and counter-terrorist financing compliance. The decision mandates all Palestinian financial institutions to impose strict transaction prohibitions on North Korea, apply enhanced due diligence to Iran, and conduct ongoing monitoring on twelve other listed countries including the Bahamas, Pakistan, and Syria. This directive updates previous regulatory guidance and requires immediate implementation by all competent authorities to align with FATF standards and national AML/CFT laws.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2019/50) To all banks operating in Palestine Date: Wednesday, 27 February 2019
Subject: High-Risk Countries and Countries Under Increased Monitoring for Compliance with International Standards
Attached is a copy of Decision No. (2019/1) dated 25/02/2019 issued by the Financial Follow-Up Unit regarding High-Risk Countries and Countries Under Increased Monitoring for Compliance with International Standards, in accordance with the list issued by the Financial Action Task Force (FATF).
Accordingly, all banks operating in Palestine are requested to take the necessary legal measures to implement the requirements of the aforementioned decision and the specific measures to be taken.
Inspection and Supervision Department Palestine Monetary Authority
Copy: The Honorable Financial Follow-Up Unit
Ramallah and 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 2822713
Financial Follow-Up Unit
State of Palestine
Financial Follow-Up Unit
State of Palestine
Decision No. (2019/1)
Issued by the Financial Follow-Up Unit
Dated 25 February 2019
Concerning High-Risk Countries and Countries Under Increased Monitoring for 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),
Based on Decision No. (2016/4ج/8) of the National Committee for Combating Money Laundering and the Financing of Terrorism dated 01/12/2016 regarding the delegation to the Financial Follow-Up Unit to publish a list of high-risk countries on a periodic basis,
Following the determination by the Financial Action Task Force (FATF) on 22/02/2019,
In addition to Decision No. (2016/3ج/6) of the National Committee for Combating Money Laundering and the Financing of Terrorism dated 01/08/2017 regarding the prohibition of financial transactions with the Democratic People's Republic of Korea,
And based on the requirements of public interest, it has been decided as follows:
First: High-Risk Countries
The following countries are considered high-risk due to strategic deficiencies regarding money laundering and terrorist financing standards, and they shall be treated according to the following specifications:
| Country Name | Measures to be Taken |
|---|---|
| Democratic People's Republic of Korea (North Korea) | All financial institutions are prohibited from conducting financial transactions with North Korea. |
| Iran | Continue to take 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 financial institutions operating and licensed in Iran, in compliance 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
Financial Follow-Up Unit
State of Palestine
Second: Countries Under Increased Monitoring for Compliance with International Standards
The following countries are under increased monitoring for compliance with international standards related to combating money laundering and terrorist financing, and they shall be treated according to the following specifications:
| Country Name | Measures to be Taken |
|---|---|
| Commonwealth of The Bahamas | Given that these countries have submitted a high-risk action plan to address strategic deficiencies, all financial institutions must take ongoing due diligence measures regarding business relationships with these countries, including financial transactions executed from or to these countries, to reduce red flags of transactions and identify fund sources, in compliance with Law No. (20) of 2015 on Combating Money Laundering and the Financing of Terrorism and its instructions. |
| 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 must take the measures specified in the tables outlined in Sections (First) and (Second) of this decision.
Fourth: Update
This decision updates Decision No. (2018/3) of the Financial Follow-Up Unit regarding High-Risk and/or Non-Compliant Countries dated 23 October 2018.
Fifth: Implementation
All competent authorities are required to implement the provisions of this decision, and it shall take effect from the date of its issuance.
Director of the Financial Follow-Up Unit
A. Wael Lavi
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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