Instructions No. 4 of 2012 Regarding ATM Services

Palestine Monetary Authority

Instructions No. (2012/4)

To all banks operating in Palestine

Date: Monday, April 21, 2012

Subject: ATM Service

In the context of the Palestine Monetary Authority's efforts to enhance its policies aimed at developing electronic banking products by maintaining the quality of banking services provided to customers, and in light of the commitment to keep pace with global developments in electronic banking services, including ATM services, and to ensure a minimum level of banking service throughout the week and around the clock, including holidays and official holidays, the Authority emphasizes the necessity for the banking sector to provide ATM services to all eligible bank customers in accordance with internationally recognized best practices in this field.

These instructions include minimum requirements for ATM operations, addressing various issues related to regulating ATM operations, as follows:

1. General guidelines and provisions.
2. Conditions to be met in ATM machines and their systems.
3. Conditions to be met in ATM cards.
4. Security and protection requirements for ATM machines.
5. Cash loading of ATM machines.
6. Maintenance of ATM machines.
7. Customer rights and mitigation of operational risks.
8. ATM services.

The provisions of these instructions shall take effect from the date of their issuance, and anything conflicting with them is hereby repealed.

Public Relations and Market Development Department

Palestine Monetary Authority

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

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Palestine Monetary Authority

1. General Guidelines and Provisions:

1.1 Banks operating in Palestine are permitted to install and/or remove and/or operate an ATM at a location they deem appropriate, provided that the Palestine Monetary Authority is notified thereof.

1.2 All banks are required to provide ATM service at every branch and office under their jurisdiction, ensuring at least one ATM is available at each location in accordance with relevant instructions.

1.3 An ATM card shall be issued to every eligible customer upon request. The bank may issue a card without a written customer request in cases of card expiration or reissuance due to a change in the card's rating level by the issuing company, provided customers are notified accordingly.

1.4 Arabic shall be provided as the primary language on the ATM system, with options for other foreign languages available.

1.5 A trash bin shall be provided next to each ATM to maintain environmental cleanliness.

1.6 A dedicated entrance shall be provided for persons with disabilities to ensure access to all ATMs belonging to bank branches/offices and external machines.

2. Conditions to be met in ATM machines and their systems:

2.1 All ATMs must be technically and mechanically configured to accept all ATM cards issued by banks operating in Palestine, as well as international credit cards and a minimum of cards from (MasterCard & Visa).

2.2 All ATMs must be technically and mechanically configured to comply with the global EMV (Europay, MasterCard and Visa) requirements of card-issuing companies, within the period specified by them.

2.3 The ATM screen shall display a message to the customer requesting their consent to the commission amount if the transaction involves any fees. If using another bank's ATM, a message must indicate that fees will be charged to their account for the transaction, to obtain their consent to proceed.

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

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Palestine Monetary Authority

2.4 The ATM screen shall display a message to the customer requesting their consent to the exchange/conversion rate if the transaction involves currency conversion. If using another bank's ATM, a message must indicate the need for their consent to proceed with the transaction.

2.5 The ATM shall automatically print a receipt detailing the customer's transaction, including at least (withdrawal amount, currency, exchange rate, remaining balance), immediately after completion.

2.6 ATMs shall be connected to the bank's automated system and other necessary systems via a fast and secure communication network, such as a Lease line.

2.7 An alternative communication network (Backup Line) shall be provided for ATMs belonging to branches/offices, which shall activate automatically in case of primary network failure. Efforts must be made to provide backup networks for external ATMs to ensure uninterrupted service.

2.8 A notice or logo shall be displayed on the main ATM screen or beside it, showing direct contact means (landline/mobile) for the machine's responsible officer, enabling customers to report malfunctions or submit inquiries.

2.9 The main ATM screen shall display addresses of nearby ATMs in the same geographic area, allowing customers to use them if unable to use a specific ATM for any reason.

3. Conditions to be met in ATM cards

3.1 ATM cards shall comply with global (EMV) card requirements, which are more secure against fraud compared to standard magnetic stripe cards, within the period specified by card-issuing companies.

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@p1ma.ps www.pma.ps

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Palestine Monetary Authority

3.2 All local ATM cards shall be gradually replaced to become cards accepted by all ATMs and point-of-sale terminals in Palestine and abroad, such as (Visa Electron) cards, within two years from the date of issuance.

3.3 The three main currencies circulating in Palestine (Shekel, Dollar, Dinar) shall be adopted as the base currency for ATM cards, allowing the customer to choose one as the base currency for the issued card.

3.4 ATM cards shall be printed and delivered to the customer within a maximum of 7 days from the date of application submission.

3.5 The issued card shall include at minimum: "Issuing Bank Name, Logo, Contact Details of the Bank and/or Card Issuing Company."

3.6 Customers have the right to request an additional ATM card in accordance with the bank's operational conditions and procedures.

4. Security and protection requirements for ATM machines

4.1 The ATM shall be equipped with a built-in camera (Built In) recording the user's face.

4.2 Surveillance cameras shall be installed outside ATMs belonging to branches/offices, capturing the full body of the user, nearby persons, and the surrounding area. They shall be mounted on external ATMs where feasible.

4.3 ATM cameras (internal and external) shall be of high quality (High Resolution) and capable of retaining recordings according to relevant security and safety instructions. External cameras shall be appropriately protected and concealed, with provisions made to shield them from deliberate vandalism.

4.4 Appropriate lighting shall be installed inside the ATM and the surrounding area around the clock.

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

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Palestine Monetary Authority

4.5 The ATM shall be designed to restrict the surrounding viewing range, and an open cover shall be provided over the keypad to prevent anyone from reading the PIN entered by the customer.

4.6 The card insertion slot shall be securely designed to prevent misuse, with technical safeguards to reduce the likelihood of a card being left in the slot, such as issuing an alert or alarm to the customer.

4.7 All ATMs shall be equipped with anti-skimming devices (Anti Skimming Devices - ASD) to mitigate risks of electronic card data copying and theft.

4.8 A high degree of protection and encryption shall be provided for ATM and electronic card systems, such as installing "Hardware Security Module" (HSM) devices.

4.9 Periodic inspections shall be conducted on all ATMs and their cameras to ensure proper operation and verify the safety and security of the surrounding environment.

4.10 Transactions executed by ATMs shall be stored for a sufficient period of no less than one year, for legal and operational reasons.

4.11 Secure and protected locations shall be provided for external ATMs.

4.12 The ATM or withdrawal transaction shall be disabled if the camera mounted on the ATM is obstructed.

5. Cash loading of ATM machines

5.1 All necessary measures shall be taken to ensure liquidity for basic transactions in denominations available in ATMs at branches/offices. At least two denominations shall be provided in external ATMs according to the area and public sector salary payment schedules, including holidays and official holidays.

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

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Palestine Monetary Authority

5.2 ATM cash loading shall be monitored continuously, avoiding loading during peak customer usage times.

5.3 The bank must designate at least two employees per area to monitor ATM cash loading in that area, focusing on the public sector salary payment period, including holidays and official holidays.

5.4 High priority shall be given to monitoring cash balances in all ATMs, especially external ones, with continuous monitoring and loading before holidays and official holidays, and throughout those periods.

5.5 ATMs shall be connected to automated cash balance monitoring systems, providing an automatic alert if the balance falls below a specified level.

6. Maintenance of ATM machines

6.1 Necessary measures shall be taken to ensure continuous ATM operation, designating trained and specialized staff for maintenance, development, and updating of ATMs to handle routine maintenance and breakdowns.

6.2 Services shall be provided at all ATMs around the clock (24/7) in high-risk areas. If an ATM is taken offline for maintenance or other reasons, customers must be notified via a screen message, with an alternative service provided at the nearest ATM in the area.

6.3 A backup power source (UPS) shall be provided for all ATMs, including external ones, to ensure ATMs do not stop during customer transactions.

7. Customer rights and mitigation of operational risks

7.1 Bank customers shall be educated and unified regarding the services provided by ATMs and appropriate usage methods, utilizing available media channels.

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

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Palestine Monetary Authority

7.2 Customers must submit a written request to obtain an ATM card, be informed of the card's base currency, and sign to acknowledge all transactions and fees associated with card usage.

7.3 Customers shall be educated and unified regarding withdrawals made outside the bank's ATMs (either from other banks' ATMs or POS terminals), noting that such withdrawals are deducted from the ATM card's base currency. If the base currency account lacks sufficient funds, the transaction will be declined.

7.4 Customers shall be educated and unified on how to create, protect, destroy, or easily change PINs.

7.5 Customers shall be educated and unified on how to safeguard their ATM cards and PINs, not disclose PINs to others, and change PINs periodically.

7.6 Customers shall be notified of transactions executed on their accounts via ATM upon request (SMS).

7.7 A service for reporting lost or stolen cards shall be provided, available to customers throughout the week, including holidays and official holidays.

7.8 Customers shall be enabled to file objections on executed transactions and provided access to ATM camera recordings to verify transaction authenticity, in accordance with relevant legal procedures.

8. ATM services

8.1 Basic Services:

These are the most important basic services that must be provided at a minimum in:
ATM machines:

8.1.1 Cash Withdrawal:
a- The three basic currencies for cash withdrawal (Dollar, Dinar, Shekel) shall be provided in ATMs belonging to branches/offices. External ATMs shall provide at least two currencies based on area needs.

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

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Palestine Monetary Authority

b- The daily withdrawal limit for a customer shall be a minimum of one thousand dollars or its equivalent in other currencies. The daily limit may be increased according to agreements between the bank and the cardholder.

8.1.2 Balance Inquiry:
Bank customers shall be enabled to inquire about all known account balances on their ATM card at any time through all ATMs, with the option to request a statement of account balances.

8.1.3 Issuance of a Brief Account Statement:
Customers shall be enabled to print a brief statement of the last 10 transactions on their known accounts via all bank machines.

8.1.4 Changing the Card PIN:
Customers shall be enabled to change their ATM card PIN securely and simply.

8.1.5 Transferring Between Customer Accounts:
Customers shall be enabled to transfer funds between their known accounts on the ATM card, within the same bank and across different currencies.

8.2 Additional Non-Mandatory Services:

These services complement basic ATM services and are preferable to be available on ATMs, facilitating citizens' banking transactions at any time, especially for those unable to visit branches during working hours.

8.2.1 Cash/Cheque Deposit:
Customers shall be enabled to deposit funds/cheques via ATMs without visiting a bank branch.

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

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Palestine Monetary Authority

8.2.2 Cheque Book Request:
A service to request cheque books for customers shall be provided via ATMs at any time, adhering to relevant instructions before issuing cheque books.

8.2.3 Mobile Phone Recharge:
The ability to recharge mobile phones for selected numbers, values, and Palestinian networks approved by banks shall be provided.

8.2.4 Utility Bill Payment:
A service to pay utility bills at the bank (mobile, landline, electricity...) shall be provided.

8.2.5 Statement Request:
Customers shall be enabled to request a historical statement for their account(s) via all ATMs. The requested statement shall be delivered to the customer through their branch or as agreed, within a period not exceeding five days from the request date.

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh P.O. Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps