Law Decree No. 4 of 2026 on Reducing Cash Usage

Issue 235 2026/02/25 Reference Number: 235-02-2026 6 mjr.ogb.gov.ps Law Decree No. (4) of the year 2026 AD Regarding the Reduction of Cash Usage

President of the State of Palestine Chairman of the Executive Committee of the Palestine Liberation Organization

Based on the Basic Statute of the Palestine Liberation Organization, and the Basic Law amended for the year 2003 AD and its amendments, and after reviewing Law No. (2) of the year 1997 AD regarding the Palestinian Monetary Authority and its amendments, and Law Decree No. (9) of the year 2010 AD regarding Banks and its amendments, and Law Decree No. (39) of the year 2022 AD regarding Combating Money Laundering and Financing of Terrorism and its amendments, and Law Decree No. (41) of the year 2022 AD regarding National Payments, and Law Decree No. (17) of the year 2024 AD regarding Electronic Transactions and Trust Services, and upon the draft Law Decree submitted by the Council of Ministers dated 2026/02/10 AD, and upon the powers delegated to us,

We have issued the following Law Decree:

Article (1) Definitions The words and phrases appearing in this Law Decree shall have the meanings specified below, unless the context indicates otherwise:

The State: The State of Palestine. Monetary Authority: The Palestinian Monetary Authority. Ministry of Finance: The Ministry of Finance and Planning. Transaction: A single transaction shall be considered as any payment or group of related payments arising from a single contractual relationship or a single economic purpose, even if implemented in stages, in accordance with the provisions of Article (3) of this Law Decree. Total Value of the Transaction: The total financial value agreed upon between the parties to the transaction, including applicable taxes and expenses associated with the transaction. Cash: Paper and metal currencies circulating in the State. Cash Ceiling: The maximum limit permitted for cash transactions in a single transaction, in accordance with the provisions of this Law Decree and the regulations issued pursuant to it. Cash Payment: The amount received or paid in cash to complete transactions. Non-Cash Payment Method: Any electronic means that results in transferring the total value of the transaction to a bank account or electronic wallet without using cash and acting as its substitute, such as bank cards, electronic financial transfers, advanced electronic payment systems, or any other electronic payment method approved in the State. Loan or Financing: All types and forms of direct and indirect credit facilities and financing formulas granted by banks and licensed financial institutions in accordance with the provisions of the Law. Person: Natural or legal person.

Article (2) Objectives This Law Decree aims to achieve the following:

1. Reducing the use of cash in transactions and managing related risks.
2. Enhancing the use of non-cash payment methods.

Article (3) Scope of Application The provisions of this Law Decree shall apply to all transactions exceeding the cash ceiling specified in Article (5) of this Law Decree, including:

1. Transactions that have a financial or commercial effect.
2. Transactions involving periodic or non-periodic payments.
3. Transactions conducted in any currency circulating in Palestine.

Article (4) Exemptions The application of the provisions of this Law Decree shall be exempted regarding the disbursement of grants, donations, and expenses directed towards social development and civil work for natural persons, in cases where the use of non-cash payment methods is impossible or when facing difficulties in accessing them, in accordance with the regulations issued for this purpose.

Article (5) Cash Ceiling

1. Cash payment in transactions exceeding a value of (30,000) thirty thousand NIS or its equivalent in the circulating currency in the State is prohibited in any case per transaction.
2. The cash ceiling stipulated in paragraph (1) of this Article may be amended by a decision of the Monetary Authority after coordination with the Ministry of Finance.

Issue 235 2026/02/25 Reference Number: 235-02-2026 7 mjr.ogb.gov.ps Law Decrees

Article (6) Powers to Determine Ceilings Subject to the provisions of Article No. (5) of this Law Decree, the Monetary Authority, in coordination with the Ministry of Finance, shall determine the following by decision or regulations issued by it:

1. Temporary increase of the cash ceiling for transactions in cases of crises and emergencies or for certain categories of citizens.
2. The maximum limit for loans and financing permitted to be provided in cash.
3. The maximum limits for transactions whose subject is cash, such as withdrawal, deposit, or currency exchange, and for transactions in certain sectors, particularly real estate and luxury goods sectors, to achieve the objectives of this Law Decree.
4. Financial ceilings for the value of circulating checks, regulating the process of their circulation and endorsement, and their specifications and limits.
5. The maximum limits for donations, gifts, and cash gifts that can be accepted.
6. Any transaction that must be conducted exclusively through non-cash payment methods.
7. Any transactions exempted from the application of the ceilings specified in accordance with the provisions of this Law Decree.
8. Non-profit personal or family transactions.

Article (7) Obligations of Entities Subject to the Provisions of the Law Decree

1. Government departments and public institutions are obligated to execute transactions on their behalf or for others using non-cash payment methods, and are also obligated to provide and make non-cash payment methods available to those dealing with them.
2. Financial institutions, companies, establishments, traders, professionals, and service providers that execute commercial or service transactions are obligated to retain the necessary records and documents indicating the payment method, in accordance with the provisions of prevailing legislation.
3. The Monetary Authority, concerned government departments and public institutions, banks, and payment service providers are obligated to promote and disseminate non-cash payment methods, and organize and implement comprehensive awareness campaigns targeting all segments of society, to raise awareness of the importance of transitioning to non-cash payment methods, and to provide support to traders and individuals to facilitate implementation.

Article (8) Penalties

1. Subject to any harsher penalty stipulated in the Penal Code or any other law in force in the State, anyone who violates the provisions of Articles (4), (5), (6), or (7) of this Law Decree shall be punished with a fine not less than 5% and not more than 15% of the total value of the cash transaction subject to the violation, and the fine may be imposed on both parties to the transaction.
2. The penalty specified in paragraph (1) of this Article shall be doubled in case of repeated violation, or splitting the transaction value, or declaring a value lower than its actual value for the purpose of evading the prohibition stipulated in Article (5) of this Law Decree.

Issue 235 2026/02/25 Reference Number: 235-02-2026 8 mjr.ogb.gov.ps Law Decrees

3. Subject to the provisions of relevant legislation in force in the State, committing the violation shall not affect the validity of the transaction or the contractual obligations arising from it, and they shall remain valid and binding on the parties despite such violation.

Article (9) Role of the Monetary Authority in Supervision

1. The Monetary Authority shall assume general supervision over the implementation of the provisions of this Law Decree, in coordination with the Ministry of Finance, the Ministry of National Economy, the Financial Monitoring Unit, Customs Police, and the Police, to ensure implementation across all categories of those dealing.
2. The Monetary Authority, in coordination with the Ministry of Finance, shall establish the timeline for implementing the provisions of this Law Decree, including the necessary technical and regulatory procedures.

Article (10) Rectification of Status Every person subject to the provisions of this Law Decree is obligated to rectify their status in accordance with its provisions within a period determined by the Monetary Authority not exceeding (6) six months from the date of its publication in the Official Gazette. The Monetary Authority, in coordination with the Ministry of Finance, may extend this period for additional periods in accordance with public interest requirements.

Article (11) Issuance of Decisions and Regulations The Monetary Authority shall issue the decisions and regulations necessary to implement the provisions of this Law Decree.

Article (12) Repeal Everything inconsistent with the provisions of this Law Decree is repealed.

Article (13) Entry into Force All supervisory and competent authorities shall, each within their respective competence, implement the provisions of this Law Decree, and it shall be enforced from the date of its publication in the Official Gazette.

Issued in Ramallah on: 2026/02/17 Gregorian Corresponding to: 29 Sha'ban 1447 Hijri

Hamdous Abbas President of the State of Palestine Chairman of the Executive Committee of the Palestine Liberation Organization

Law Decrees