Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (7) of 2021

Regarding the Regulation of the Relationship Between Payment Service Companies and Users

Based on the provisions of Legislative Decree No. (17) of 2012 concerning the National Payment Settlement Law, particularly Articles (5) and (9) thereof, and based on what the Board of Directors of the Palestine Monetary Authority approved in its meeting No. (236) dated 23/06/2021, and in pursuit of the public interest, we have issued the following Instructions:

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Chapter One

Definitions and Scope of Application

Article (1)

Definitions

The words and phrases contained in these Instructions shall have the meanings specified below, unless the context indicates otherwise:

• Authority: The Palestine Monetary Authority.
• Service Provider: The company licensed by the Authority to provide payment services.
• User: The person who uses a payment service as a payer or payee.

Article (2)

Objective and Scope of Application

1. These Instructions aim to regulate the relationship between the Service Provider and Users in a secure and transparent manner.
2. The provisions of these Instructions shall apply to all companies licensed by the Authority to provide payment services.

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Chapter Two

Users

Article (3)

Protection of User Rights

The Service Provider shall comply with the following:

1. Adopt a clear policy to maintain and protect the confidentiality of user information.
2. Provide the user, upon signing and/or upon request, with a copy of the contracts, terms, and conditions.
3. Provide the user, upon request, with a statement showing the details of executed financial transactions.
4. Provide guidance and technical support to users, and answer their inquiries.
5. Provide a 24/7 hotline and any other means enabling the user to immediately report the loss, theft, or unauthorized use of the payment service or its encryption codes and security information, provided that the report, its date, and time are documented.
6. Immediately notify the user of any discrepancy in the execution of a payment order.
7. Provide the user with a single written or electronic notification, at minimum via SMS, following any amendments to the terms and conditions, at least one month prior to the implementation of such amendments.

Article (4)

Contracting Information

The Service Provider shall organize the relationship with the user based on clear contractual foundations containing at a minimum the following:

1. The terms and conditions related to the service, and the rights and obligations arising therefrom.

2. An accurate and complete description of the payment service and its benefits.

3. Procedures for handling objections and complaints.

4. The mechanism for obtaining financial statements and notifications.

5. Including the following obligations on the user:

   a. Use the payment service and its applications securely and in compliance with their requirements and procedures, and take all precautionary measures to safeguard codes and/or passwords and any other security requirements.

   b. Notify the Service Provider without delay from the moment the user becomes aware of any potential error in their accounts and/or any unauthorized orders executed, or upon the theft or loss of payment instruments.

Article (5)

Complaints

The Service Provider shall comply with the following:

1. Define the mechanism and procedures for submitting complaints and objections by users.
2. Designate a department/unit/officer to handle user complaints.
3. Provide suitable channels for submitting complaints and publicize them.
4. The handling of complaints and their outcomes against any service agents shall be the responsibility of the Service Provider.
5. Submit a periodic quarterly report to the Authority covering all received complaints and the actions taken to address them, in accordance with Annex No. (1).

Article (6)

Complaint Handling

The Service Provider shall comply with the following when handling user complaints:

1. Request the following basic information from the user at a minimum:

   a. Name of the complainant and contact details. b. Subject of the complaint.
   c. Any supporting documents for the complaint.

2. Provide the user with a notification of complaint receipt from the Service Provider.

3. Register the complaint in a dedicated complaint log and include all relevant information.

4. Notify the user of any follow-up within a maximum of (4) four days from the date of complaint submission, and grant them a period of (5) five working days to complete it.

5. Notify the user within a maximum of (10) ten working days from the date the complaint is completed, including at a minimum the following information:

   a. Complaint reference number. b. Subject of the complaint.
   c. Final decision regarding the complaint, with reasons.

Article (7)

Disputed Payment Orders

The Service Provider shall refund the amount of disputed payment orders, or those proven to have been incorrectly executed by the Service Provider, to the user within (3) working days from the date the validity of the objection is established.

Article (8)

Freezing of User Accounts

1. The Service Provider shall freeze a user account that has had no financial transactions for a period exceeding one year, provided that the user is notified at least (30) thirty days prior to the effective date of the freeze.
2. Accounts associated with commissions and fees charged by the Service Provider to the user, as determined by the Authority, are exempt from the freeze stipulated in paragraph (1) of this Article.
3. Maintain a register titled "Dormant Accounts" containing a list of dormant account holders' names, account opening date, freeze date, current balance, all available information about them, and actions taken to contact them.
4. Provide dual control over dormant accounts, protect the register, and audit it periodically at a supervisory level higher than that applied to other accounts.
5. Establish and apply mechanisms to communicate with dormant account holders, designate responsible persons, document this communication, and prepare periodic reports and follow-up results.
6. A dormant account may be reactivated after the user or their legal representative signs a written request for reactivation according to the form approved by the payment service provider, as well as signing a declaration confirming the accuracy of the account balances available in the user's account at the time of reactivation.
7. Maintain special files for reactivated dormant accounts, storing the user's request for reactivation and the declaration confirming balance accuracy at the time of reactivation.

Article (9)

Closing of User Accounts

1. The Service Provider shall close a user's account upon their request without delay, without affecting any associated obligations.
2. The Service Provider may close a dormant account provided that the account balance is zero.
3. The Service Provider shall establish appropriate procedures ensuring the user can withdraw the full account balance regardless of the daily withdrawal limit, and document this upon account closure.

Article (10)

Management of Deceased Users' Accounts

The Service Provider shall comply with the following:

1. Continuously update user data and monitor daily newspapers, various media outlets, and any means or systems provided by the Authority to identify deceased users of the Service Provider.

2. Prepare operational procedures for handling deceased users' accounts to ensure dual control and mitigate any risks associated with these accounts, which shall include at a minimum the following:

   a. Place a hold on the deceased's account in the Service Provider's systems upon learning of the death, preventing any transactions or operations on the account. b. Inventory all balances of the deceased's accounts across different payment instruments and associated wallets, and place them under hold.
   c. Separate deceased users' account files from other accounts, and attach documents and records confirming the accuracy of account balances.
   d. Obtain approval from the Service Provider's legal department or legal counsel for the distribution of shares to heirs according to the estate inventory certificate. e. Subject these accounts to internal audit programs at least once annually. f. Prepare periodic reports and follow-up results for these accounts, and provide the Authority with a quarterly report on deceased users' accounts.

Article (11)

Unclaimed Balances

1. Balances in dormant accounts for which ten years have passed since the date of the last transaction, without locating the owners during this period despite exhausting all possible contact means, shall be transferred to a separate (suspended) account titled "Unclaimed Balances", whereby no transactions are permitted on the electronic wallet account titled "Unclaimed Balances".
2. After one year has passed without any person or entity claiming balances in the dormant accounts, and following the announcement stipulated in paragraph (d) of this Article, those balances shall be transferred to the Authority according to the mechanism determined by the Authority, accompanied by a detailed statement of all information and actions taken. If heirs contact the Service Provider after the balances have been transferred to the Authority, the Service Provider shall follow up on the matter.
3. If the owners of those accounts are still not located after an additional year from the date of the announcement publication, those balances shall be transferred to the Authority according to the mechanism determined by the Authority, accompanied by a list of the owners' names and all available information about them, including identity documents, addresses, phone numbers, and a summary of actions taken to locate them.
4. The Authority shall be provided with a quarterly report regarding dormant electronic wallet accounts.

Article (12)

Fees and Commissions

The Service Provider shall comply with the following:

1. Adhere to the instructions issued by the Authority regarding fees and commissions.
2. Publicize all fees and commissions clearly and explicitly on the Service Provider's website and service application.
3. Provide users with a written or electronic notification following any amendments to fees and commissions at least one month prior to their implementation.
4. Obtain the user's recorded consent regarding service costs and exchange rates, if applicable, before executing a payment order.
5. The user and the Service Provider may agree to deduct fees and commissions from the payment order amount.

Article (13)

Repeal

1. Instructions No. (3) of 2020 regarding the regulation of the relationship between payment service companies and users are hereby repealed.
2. Any provisions conflicting with the terms of these Instructions are hereby repealed.

Article (14)

Implementation and Enforcement

All competent authorities shall, within their respective jurisdictions, implement the provisions of these Instructions, effective from the date of their issuance.

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Issued in Ramallah on 30/06/2021

Dr. Firas Malham
Governor