Regulatory Alerts2022-09-29
Added · Updated
Palestine Monetary Authority Circular No. 239 (2022) - Non-Profit Companies Law
The Palestine Monetary Authority requires specialized lending institutions operating in Palestine to take necessary legal action regarding the Non-Profit Companies Law No. (20) of 2022, which is attached to the circular. The law establishes the legal framework for non-profit companies, defining their structure, objectives, and registration requirements, including a minimum of seven shareholders and a board of at least five members. It prohibits the distribution of profits to shareholders, restricts shareholders from holding interests in for-profit entities executing the company's projects, and mandates strict financial reporting, tax compliance, and banking regulations. The law also introduces comprehensive anti-money laundering and counter-terrorist financing measures, designating the Registrar as the competent authority for supervision, risk assessment, and enforcement of due diligence procedures on beneficiaries and beneficial owners.
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