The National AML and CFT Committee

State of Palestine

The National Committee for Combating Money Laundering and Financing of Terrorism State of Palestine

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Instructions No. (J/2) of 2017

Regarding Dealing with Money Changers and Money Exchange Companies Operating and Licensed in Israel

The National Committee for Combating Money Laundering and Financing of Terrorism, Based on the provisions of Law Decree No. (20) of 2015 Regarding Combating Money Laundering and Financing of Terrorism and its amendments, particularly the provisions of paragraphs (14, 15) of Article (20), Based on the study submitted by the Financial Monitoring Unit regarding the risks of dealing with Israeli money changers and money exchange companies, Based on the powers delegated to us, And in pursuit of the public interest, We have issued the following Instructions:

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(1) Article

Definitions

The definitions set forth in Law Decree No. (20) of 2015 Regarding Combating Money Laundering and Financing of Terrorism and its amendments shall apply wherever they appear in these Instructions.

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(2) Article

Scope of Application

The provisions of these Instructions shall apply to all banks, money changers, and money exchange companies operating in the State of Palestine and licensed to do so by the Palestinian Monetary Authority.

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(3) Article

Risks

Money exchange companies and money changers operating in and/or licensed to operate in Israel are considered high-risk.

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(4) Article

Prohibition

All banks, money exchange companies, and money changers operating in the State of Palestine are prohibited from engaging in any of the following:

1. Dealing directly or indirectly or conducting any financial transaction originating from or destined to Israeli money changers and/or money exchange companies, except after fulfilling the following requirements:

(a) Obtaining approval from the Palestinian Companies Registrar to operate as a foreign company in Palestine in accordance with the provisions of Jordanian Companies Law No. (12) of 1964.

(b) Obtaining written approval from the Palestinian Monetary Authority.

(c) Obtaining approval from the competent supervisory and regulatory authority to open bank accounts in the State of Palestine.

2. Opening any accounts for individuals licensed to practice money changing in Israel if the purpose of such accounts is to conduct money changing business in the State of Palestine.

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(5) Article

Compliance

All banks and money exchange companies operating in the State of Palestine must comply with the following:

1. Regularize their status in accordance with the provisions of these Instructions by March 30, 2018.

2. Settle financial positions arising prior to the issuance of these Instructions, as well as any financial rights resulting from dealing with Israeli money changers and/or money exchange companies, based on instructions issued by the Palestinian Monetary Authority for this purpose in coordination with the Financial Monitoring Unit.

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(6) Article

Necessary Measures

The Palestinian Monetary Authority, in coordination with the Financial Monitoring Unit, shall issue the necessary measures to implement the provisions of this Decision after notifying banks, money exchange companies, and money changers thereof.

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(7) Article

Entry into Force

All competent authorities shall, each within their respective jurisdiction, implement the provisions of these Instructions. They shall take effect from the date of their issuance and be published in the Official Gazette.

Issued in Ramallah on: 26/12/2017 CE
Corresponding to: 1439/ / AH

The National Committee for Combating Money Laundering and Financing of Terrorism

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State of Palestine – Al Birah P.O. Box 3981
Tel.: 0097022967401/2 Fax: 0097022967426
E-mail: info@ffu.ps
State of Palestine – Al Birah P.O. Box 3981
Tel.: 0097022967401/2 Fax: 0097022967426 www.ffu.ps