Regulatory Alerts2019-01-01
Circular No. 253 of 2019 Regarding Internal Audit of the Anti-Money Laundering and Counter-Terrorist Financing Environment
The Palestine Monetary Authority requires all banks operating in Palestine to conduct regular internal audits of their anti-money laundering and counter-terrorist financing frameworks to ensure procedural effectiveness. Banks must explicitly include assessments of AML/CFT policies, risk-based approaches, staff training, system monitoring capabilities, record retention, and prior audit remediation in their future internal audit plans. Furthermore, institutions are mandated to submit their most recent AML/CFT internal audit report to the Authority within one week of this circular's issuance for compliance verification and risk mitigation evaluation.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (253 / 2019)
To all banks operating in Palestine
Date: Tuesday, October 29, 2019
Subject: Internal Audit of the Anti-Money Laundering and Counter-Terrorist Financing Environment.
Continuing the Palestine Monetary Authority's efforts to monitor and strengthen the anti-money laundering and counter-terrorist financing environment, and to ensure the effectiveness of implemented measures, the bank's internal audit department must regularly assess its anti-money laundering and counter-terrorist financing programs and procedures. Accordingly, we emphasize the necessity of adhering to the following:
1. Include in future internal audit plans an examination of the anti-money laundering and counter-terrorist financing environment, which shall cover:
- The effectiveness and efficiency of anti-money laundering and counter-terrorist financing policies, procedures, and operational programs.
- Due diligence and enhanced due diligence procedures, and the extent of focus on high-risk customers and transactions.
- The effectiveness of applying the risk-based approach.
- The effectiveness of bank staff in implementing policies and procedures.
- The effectiveness and relevance of training programs provided to bank staff.
- The effectiveness and efficiency of known standards and scenarios applied to banking programs and systems, including their ability to identify risks, unusual activity, and suspicious cases.
- The adequacy of record retention and provision of related statistics.
- The extent to which the bank addresses deficiencies identified during previous audit operations.
2. Provide us within one week from the date hereof with the latest internal audit report conducted on the anti-money laundering and counter-terrorist financing environment, to assess the effectiveness and efficiency of the function in mitigating money laundering and terrorist financing risks, evaluate the quality and effectiveness of due diligence procedures, systems, and programs used to monitor unusual transactions and suspicious cases, and review measures taken to address identified deficiencies.
Supervision and Inspection Department
Palestine Monetary Authority
Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Fax | Tel: +970 2 2415251 | Tel
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Fax | Tel: +970 8 2825713 | Tel
www.pma.ps