Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

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Instructions No. (59) of 2016

Regarding the Transfer of Funds, Precious Metals, and Valuable Documents

Based on the provisions of Decision-Law No. (9) of 2010 concerning Banks, particularly Article (72) thereof, and in accordance with the powers delegated to us, and to serve the public interest, we have issued the following Instructions:

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Article (1)

Definitions

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

• Funds: Cash amounts in all currencies, of all types and denominations, whether paper or metallic.
• Precious Metals: Gold, silver, platinum, and gemstones.
• Valuable Documents: All documents that possess monetary value, such as checks, shares, bonds, and other securities.
• Movable Assets: Funds and/or precious metals and/or valuable documents.
• Transport Vehicle: Armored vehicles owned by the bank or a specialized transport company for transferring funds, precious metals, and valuable documents, subject to the conditions and requirements of the Monetary Authority outlined in these Instructions.
• Transport Companies: Companies licensed by security authorities and competent entities, upon which the Monetary Authority approves banks to outsource transfer operations.

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Article (2)

Scope of Application

The provisions of these Instructions shall apply to all banks licensed by the Monetary Authority to conduct banking business in Palestine.

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Article (3)

Transfer Operations by Banks

A bank wishing to conduct transfer operations independently must comply with the following:

1. Provide transport vehicles according to the following conditions, specifications, and standards:

a. Must be fully armored.

b. Must be divided into two sections: one for the driver and security crew, and another for the vault.

c. The vault must be internally divided into at least two sections.

d. The vault must be secured in a safe manner, and vault keys must be distributed to reinforce dual control and oversight procedures.

e. The vehicle must pass a security inspection test before registration with the Ministry of Transport and Communications.

f. The vehicle must be equipped with high-quality cameras covering all interior and exterior areas to ensure monitoring of all events occurring inside and outside the vehicle. Digital recording devices capable of continuous recording during stops, movement, and signaling must be used, allowing quick retrieval of recordings, including the location and time of receipt and delivery of transferred funds.

g. Must be equipped with a device enabling the bank to track the vehicle's geographic coordinates.

h. Must be equipped with anti-theft and fire alarm devices linked to the bank's management and relevant security authorities.

i. The vehicle's tires must be capable of traveling a minimum distance of 30 km in case of damage.

j. Comprehensive insurance for the vehicle and its contents (funds and/or precious metals and/or valuable documents) against theft and damage, in addition to insurance for crew members covering death and injury.

k. Keep a certified copy of the transport license in the transport vehicles, and retain the original at the bank's headquarters.

2. Provide the following controls in transfer operations:

a. The bank's organizational structure must include a department or unit to manage and monitor transfer operations.

b. The bank must employ a sufficient number of qualified staff to perform this task.

c. Job descriptions and specifications must be available for personnel assigned to this task.

d. The bank must have board-approved operating procedures covering all transfer operations and their monitoring.

e. Bank management must prepare approved forms to organize transfer operations in accordance with authorities and dual control procedures.

f. Each transport vehicle crew must consist of at least three individuals: the driver, a guard, and a designated transfer officer.

g. Bank management must verify the movable assets before handing them over to the crew, and supporting documents must be prepared for the crew's receipt.

3. Provide the following conditions and requirements for crew members:

a. Must be physically and mentally fit.

b. Must be at least 25 years old and not exceed 50 years of age. Only current employees engaged in transfer operations are exempt from the age limit of 50, provided all other specified conditions and standards are met.

c. Good conduct and character.

d. Certificate of no criminal record.

e. Possession of security experience and adequate training.

4. Provide the following transfer controls within cities:

a. Transfer without a vehicle:

A bank may conduct transfer operations within the city on foot according to the following:

1. The transfer distance must not exceed 300 meters.
2. The value of movable assets must not exceed $25,000 or its equivalent in other currencies.
3. The designated transfer officer must be accompanied by a guard.
4. Movable assets must be carried in secure bags prepared for transport.
5. The transport bag must be secured to the employee's hand to minimize the risk of kidnapping or theft.
6. The bank must hold an insurance policy covering such operations.
7. Exercise caution when transferring funds and take all possible measures to transfer funds safely.

b. Transfer using a non-armored vehicle:

A bank may conduct transfer operations within a single city using a non-armored bank vehicle according to the following:

1. The value of movable assets must not exceed $100,000 or its equivalent in other currencies.
2. The crew must consist of a driver, a designated officer, and a guard.
3. Movable assets must be carried in secure bags prepared for transport.
4. The bank must hold an insurance policy covering such operations.
5. Exercise caution when transferring funds and take all possible measures to transfer funds safely.

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Article (4)

Shipping Operations in the Gaza Strip

Banks must organize shipping operations in the Gaza Strip under caution and precautionary controls, taking all measures to ensure the safe and peaceful transfer of funds, provided that the shipment amount does not exceed the permitted limit specified in Item (1/b/4) of Article (3) of these Instructions, until specialized transport shipping companies become available.

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Article (5)

Outsourcing of Transfer Operations

1. Banks are prohibited from conducting transfer operations with any person who does not hold the necessary license from security authorities and competent entities.
2. Comply with the Monetary Authority's requirements regarding outsourcing, in accordance with the Authority's specific instructions.
3. The company must own armored vehicles meeting the conditions, specifications, and standards specified in Article (3), paragraph (1) of these Instructions.
4. Transfer operations for banks shall be conducted by transport companies during the bank's working hours, and banks are prohibited from handing over movable assets to companies prior to the transfer date.
5. The bank must verify, for each transfer operation, the existence of a valid insurance policy for the transport vehicle, and ensure that movable assets are delivered within the limit specified in the insurance policy.

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Article (6)

Reports

Banks must provide the Monetary Authority with a monthly statement of fund transfer operations to and from Israeli banks and other banks outside Palestine.

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Article (7)

Repeal

Instructions No. (2013/07) and Instructions No. (2014/01) regarding the transfer of funds, precious metals, and valuable documents, along with any provisions conflicting with these Instructions, are hereby repealed.

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Article (8)

Implementation and Enforcement

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

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Issued in Ramallah on Sunday, dated 06/11/2016 6th of Safar 1438 AH

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Deputy Governor for Financial Stability

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Supervision and Inspection Department

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Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Email: info@pma.ps | www.pma.ps

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