Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (8) for the Year 2021

Regarding Payment Orders

Based on the provisions of Decision-Law No. (17) for the Year 2012 regarding the National Payment Settlement Law, particularly Articles (5) and (9) thereof, and extending from what was approved by the Board of Directors of the Palestine Monetary Authority in its meeting No. (236) dated 2021/06/23, and in pursuit of the public interest, we have issued the following Instructions:

Chapter One

Definitions and Scope of Application

Article (1)

Definitions

The words and phrases used in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

• Authority: The Palestine Monetary Authority.
• Payment Services: All services related to sending, receiving, and executing payment orders in any currency.
• Service Provider: The company licensed by the Authority to provide payment services.
• User: The person who uses payment services as a payer or payee.
• Person: A natural or legal person.
• Payer: The person issuing a payment order through the Service Provider.
• Payee: The person receiving the funds of a payment order through the Service Provider.
• Payment Instrument: An instrument or agreed-upon procedures between a payment service user and a payment service provider to issue payment orders.
• Payment Order: Instructions from the Payer or Payee to the Service Provider requesting the execution of a payment transaction.

Article (2)

Objective and Scope of Application

1. These Instructions aim to regulate payment orders executed through the Service Provider in a secure and transparent manner.
2. The provisions of these Instructions shall apply to all companies licensed by the Palestine Monetary Authority to provide payment services.

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Chapter Two

Payment Orders

Article (3)

Approval of Payment Order

1. A payment order shall be deemed issued by the Payer upon their approval in accordance with the agreed-upon means and procedures with the Service Provider.
2. A payment order may be executed through the Payee, provided that the Payer consents, in accordance with the agreed-upon means and procedures with the Service Provider.
3. The Service Provider shall be responsible for proving the validity of the approval to issue a payment order.

Article (4)

Execution of Payment Order

The Service Provider shall comply with the following when executing payment orders for the User:

1. Execute the payment order issued by the Payer immediately upon receipt, unless the Payer requests otherwise.
2. Execute the payment order correctly as provided by the User, and take the necessary corrective actions for incorrectly executed payment orders.

Article (5)

Cancellation of Payment Order

1. The Payer is prohibited from cancelling a payment order issued by them once it has been received by the Service Provider.
2. Without prejudice to Article (3) paragraph (2) of these Instructions, the Payer is prohibited from cancelling a payment order issued by the Payee after it has been sent.

Article (6)

Rejection and Suspension of Payment Order

1. The Service Provider shall suspend a payment order without consulting the User in any of the following cases:

   a. In case of suspicion of fraud and/or money laundering and/or terrorist financing and/or execution of illegal activities.

   b. Upon request from competent regulatory or judicial authorities.

2. The Service Provider shall refuse to execute a payment order if the User notifies the Service Provider of the loss of the payment instrument or unauthorized access to their password, except in cases where fraudulent conduct by the User is proven.

3. The Service Provider shall refuse to execute a payment order if there are insufficient funds in the Payer's account.

4. The Service Provider shall refuse to execute a payment order if it exceeds the financial ceilings as per the instructions governing ceilings.

5. The Service Provider shall immediately notify the Payer in case of refusing to execute a payment order and inform them of the reasons for rejection, except for cases stipulated in prevailing laws regarding anti-money laundering and counter-terrorist financing.

Article (7)

Information on Outgoing Payment Order

The Service Provider shall provide the Payer with the following information through agreed-upon means before and after issuing a payment order:

1. A unique reference number specific to the transaction.
2. Service type.
3. Amount and currency type.
4. Charged fees and commissions.
5. Applied exchange rate in case of currency conversion.
6. Date and time of payment order execution.
7. Payee details.

Article (8)

Information on Incoming Payment Order for the Payee

The Service Provider shall provide the Payee with the following information through agreed-upon means immediately upon receipt of the payment order:

1. A unique reference number enabling the Payee to identify the payment order.
2. Amount and currency type.
3. Charged fees and commissions.
4. Date and time of account posting.
5. Service type.
6. Payer details.

Article (9)

Loss or Theft of Payment Instrument

1. The Service Provider shall implement appropriate procedures to suspend payment processes immediately upon the User's notification of the instrument's theft or loss.

2. The Service Provider shall reissue a new payment card to the User in case of theft or loss.

3. The Service Provider shall bear full responsibility for any transactions executed using a lost or stolen payment instrument in the following cases:

   a. Failure by the Service Provider to provide suitable and effective means for the User to report the loss or theft of the payment instrument, in accordance with the Palestine Monetary Authority's instructions.

   b. From the moment the User notifies the Service Provider through agreed-upon means of the loss or theft of the payment instrument until its suspension.

Article (10)

Currency Conversion

Currency conversion operations in e-wallet accounts are limited to the value of payment orders during the execution process.

Article (11)

Repeal

1. Instructions No. (5) for the Year 2020 Regarding Payment Orders are hereby repealed.
2. All provisions conflicting with these Instructions are hereby repealed.

Article (12)

Implementation and Enforcement

All competent authorities shall implement the provisions of these Instructions according to their respective jurisdictions, and they shall apply from the date of their issuance.

Issued in Ramallah on 2021/06/23 AD

Dr. Fares Al-Melhem
Governor

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Ramallah & Al-Bireh Governorate - 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