Palestine Monetary Authority

Palestine Monetary Authority

Instructions No. (7 / 2012)

To all banks operating in Palestine
Date: Tuesday, April 30, 2012

Subject: Update of Baraq System Instructions

In an effort by the Palestine Monetary Authority to enhance the effectiveness, efficiency, and stability of the "Baraq" settlement system for all member banks in the Baraq Real-Time Gross Settlement system, the following shall be adhered to:

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First: Bank Transfer Operations through the Baraq System:

(1) The use of the settlement reserve account balance shall be limited to 20% of the mandatory reserve "only" for the purpose of settling financial positions resulting from check clearing operations and internal transfer operations within the Baraq system.

(2) Banks must settle all external transfer requests executed through the Baraq system no later than 12:30 PM on each working day, except for external transfers in Israeli Shekels, which must be executed no later than 12:00 PM.

(3) Banks must execute funding and transfer operations to the PMA Controller's accounts in accordance with the funding notification data executed through the Baraq system. Note that a penalty of (one per thousand) of the funding notification amount will be imposed on banks that fail to fund their PMA accounts on the value date, for each day of delay.

(4) Banks must fund clearing results within the specified deadlines. In case a bank fails to fund the necessary amounts after 12:00 PM, the PMA will cover the net deficit to ensure system continuity and stability, imposing a financial penalty of (one per thousand) on the net deficit amount for each day. The provisions regarding financial penalties in our Instructions No. (2011/7) dated 12/9/2011 shall apply, without preventing the PMA from taking any other measures deemed appropriate to prevent recurrence in the future.

(5) The PMA reserves the right to reverse or cancel any transfer order and/or funding that violates the above, without consulting the bank.

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Second: Execution of Personal Transfers Received through the Baraq System for Beneficiaries:

(1) The receiving bank is obligated to credit the net value of the financial transfer executed through the Baraq system to the beneficiary customer's account on the same value date.

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Third: Technical Support Instructions for the Baraq System:

(1) System members must directly contact the PMA's Technical Support Office and notify it through their IT or Operations department heads, using communication channels announced by the PMA, whenever any malfunction prevents them from executing operations through the system for more than half an hour on official working days.

(2) System members must comply with instructions issued by the PMA's Technical Support Office in case of a temporary system malfunction affecting any subscriber. The PMA will contact subscribers through its Technical Support Office to notify them of the malfunction, the estimated resolution time, and exceptional operational procedures determined by the PMA.

(3) In the event of a complete main system malfunction affecting subscribers, system members must comply with the business continuity instructions issued by the PMA.

(4) Subscribers bear full responsibility for reconciling system-executed entries with their internal program records, regardless of operating conditions.

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Fourth: Other Information:

(1) Communication channels with the PMA's Technical Support Office are as follows:

• Direct phone: (02-2415276), (02-2415257 ext. 500)
• Direct fax: 02-2407780
• Email: helpdesk@pma.ps

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Payments Systems Department
Palestine Monetary Authority

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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