Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (13) of 2021

Regarding the Financial Inclusion Account

Based on the provisions of Decision-Law No. (09) of 2010 concerning Banks, particularly Articles (43) and (72) thereof, in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:

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Article (1)

Definitions

The following words and phrases shall have the meanings assigned to them below, unless the context indicates otherwise:

• Financial Inclusion Account: A bank account through which basic banking services are provided to the target group.
• Target Group: Any natural person with legal capacity holding a Palestinian ID or Jerusalem ID, who does not have an active, dormant, or joint bank account with any bank licensed to operate in Palestine.

Basic Banking Services:

1. Deposit and cash withdrawal.
2. Check deposit for collection.
3. Electronic banking services.
4. Issuance and receipt of domestic and international money transfers.
5. ATM card.

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Article (2)

Objective and Scope of Application

1. These Instructions aim to enable the target group to access and use basic banking services through the Financial Inclusion Account.
2. The provisions of these Instructions apply to all banks licensed to operate in Palestine.

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Article (3)

Financial Inclusion Account

1. The bank must accept opening a Financial Inclusion Account for any person from the target group, provided compliance with the following:

   • a. Implement all due diligence procedures to identify and verify customers and screen against approved lists upon account opening and transaction execution, in accordance with the bank's risk classification and reporting policy and applicable laws, regulations, and instructions.
   • b. Allocate a dedicated field for the account in the banking system, so that basic banking services are automatically provided to the account.
   • c. No minimum balance requirement shall be set upon account opening.
   • d. No fees or commissions shall be charged for account opening, account management, ATM card issuance and use, national key fee, or SMS, internet banking, and mobile banking services.

2. The Palestine Monetary Authority's prevailing instructions regarding fees and commissions shall apply to money transfers.

3. The Palestine Monetary Authority's prevailing instructions regarding dormant accounts shall apply to the Financial Inclusion Account.

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Article (4)

Financial Ceilings

The financial ceilings for the Financial Inclusion Account shall be as follows:

1. The maximum limit for all credit transactions in the account (cash deposits, checks, and incoming money transfers) is twelve thousand US dollars annually or its equivalent in other currencies, provided that the value of transactions within a single month does not exceed two thousand US dollars (2,000) or its equivalent in other currencies.

2. In the event that the value of credit transactions in the account exceeds the maximum limit stated in paragraph (1) of this Article, the bank may:

   • a. Approve the execution of transactions from a higher administrative level, provided that the total annual credit transactions do not exceed twenty thousand US dollars (20,000) or its equivalent in other currencies.
   • b. Convert the Financial Inclusion Account to a current or savings account after obtaining customer consent and completing additional documentation according to the nature and requirements of the account.

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Article (5)

Banking Awareness

The bank must provide appropriate banking awareness through all available channels to inform citizens of the existence of the Financial Inclusion Account, the requirements for opening it, and its specific terms and conditions, including financial ceilings and basic banking services provided through it, as well as the measures that will be taken in case of violation of the terms and conditions.

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Article (6)

Account Closure

The bank may close the Financial Inclusion Account in the event of the customer's non-compliance with the account's terms and conditions, provided that the customer is notified thereof, along with the reasons and justifications for the account closure.

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Article (7)

Refusal to Open Account

1. In the event that the bank refuses to approve the request to open a Financial Inclusion Account for any reason, the bank must notify the customer thereof within a maximum period of seven (7) working days from the date of application, stating the reasons and justifications for such refusal.

2. The bank must submit a quarterly report to the Palestine Monetary Authority within a maximum period of seven (7) working days from the beginning of the following quarter, including refused accounts and the reasons and justifications for the refusal.

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Article (8)

Rectification of Status

All banks must rectify their legal status in accordance with the provisions of these Instructions within a maximum period of three (3) months from the date of issuance of these Instructions.

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Article (9)

Repeal

1. Instructions No. (6) of 2019 regarding the Financial Inclusion Account are hereby repealed.
2. Anything conflicting with the provisions of these Instructions is hereby repealed.

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Article (10)

Penalties

Anyone who violates the provisions of these Instructions shall be punished in accordance with the provisions of Decision-Law No. (9) of 2010 concerning Banks.

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Article (11)

Implementation and Enforcement

All competent authorities shall implement the provisions of these Instructions within their respective domains, and they shall be effective from the date of their issuance.

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Issued in Ramallah on 10/06/2021

Dr. Firas Malham
Governor

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Note:
Ramallah & Al-Bireh - 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 2825713 www.pma.ps