Palestine Monetary Authority

Circular No. (2022/239) To all specialized lending institutions operating in Palestine Date: Thursday, 29 September 2022

Subject: Non-Profit Companies Law

Attached is a copy of the decision issued by the Council of Ministers No. (20) for the year 2022 regarding the Non-Profit Companies Law, published in Official Gazette Issue No. (194).

Accordingly, it is requested to take the necessary legal measures regarding this matter.

Supervision Group Palestine Monetary Authority

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www.pma.ps

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

# State of Palestine
Official Gazette
Palestinian Sector

Issued by
Official Gazette Bureau
Issue 194

Correspondence: Official Gazette Bureau
Ramallah - Al-Maisyoun - Al-Barqawi Building - opposite Millennium Hotel
Tel: 02-2971654 - Fax: 02-2986008
Email: og@lab.pna.ps
Electronic Reference: mjr.lab.pna.ps

2022/09/25
Palestinian Events
Issue (194)

## Non-Profit Companies Law
No. (20) for the year 2022

The Council of Ministers,
Based on the provisions of the amended Basic Law of 2003 and its amendments, particularly Article (70) thereof,
And the provisions contained in Law No. (42) of 2021 regarding Companies, particularly Article (2/29) thereof,
And after reviewing the Law-Decree No. (39) of 2022 regarding the Prevention of Money Laundering and Financing of Terrorism,
And upon the proposal of the Minister of National Economy,
And based on what was approved by the Council of Ministers on 2022/08/15,
And based on the powers vested in us,
And to achieve the public interest,
We have issued the following System:

### Chapter One
#### Definitions and General Provisions

#### Article (1)
##### Definitions

1. The words and expressions used in this System shall have the meanings assigned to them below, unless the context indicates otherwise:
   - **The Law**: Law-Decree No. (42) of 2021 regarding Companies.
   - **The Minister**: Minister of National Economy.
   - **The Registrar**: The Company Registrar appointed by the Minister.
   - **Non-Profit Company**: Any company registered in accordance with the provisions of the Law and this System, or related legislation, which does not aim to achieve profit.
   - **Competent Authority for the Non-Profit Company**: The official body within whose jurisdiction the primary activity of the non-profit company falls.
   - **Competent Authorities**: Any government body tasked with combating money laundering and financing of terrorism according to its jurisdiction, the Public Prosecution, and judicial police officers.
   - **The Unit**: The Financial Follow-up Unit established under the provisions of Law-Decree No. (39) of 2022 regarding the Prevention of Money Laundering and Financing of Terrorism.
   - **Beneficiary of the Non-Profit Company**: A natural person or group of natural persons who have received charitable, humanitarian, or other types of assistance through the services provided by the non-profit company.

2. The definitions contained in the effective Law-Decree regarding the Prevention of Money Laundering and Financing of Terrorism shall apply wherever they appear in this System.

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# Article (2)
## Form of the Non-Profit Company

1. The non-profit company shall take the form of a private joint-stock company, and the provisions of the private joint-stock company regarding its registration, fees, and charges collected for the registration process shall apply, unless otherwise provided in this System.
2. Non-profit companies in Palestine are subject to the effective Anti-Corruption Law.

# Article (3)
## Objectives of the Non-Profit Company

It is a condition for establishing any non-profit company that its objectives be to provide a service or economic, social, cultural, community, developmental, or other activity that provides benefit to the public interest, without aiming to achieve profit. If it generates returns or profits, they shall not be distributed among its shareholders.

# Article (4)
## Registration Request

The registration request for the non-profit company shall be submitted to the Registrar in accordance with the provisions of the Law and the systems and instructions issued pursuant to it, accompanied by the following documents:

1. The Articles of Association signed by all shareholders.
2. The Internal Regulations signed by all shareholders.
3. Names of directors, board members, and employees signing on behalf of the company, their nationality, ID or passport numbers, and addresses. For legal persons, their registration number shall be added.
4. Copies of identity documents for shareholders, directors, board members, and employees signing on behalf of the company.
5. Any other data or documents requested by the Registrar or required by effective legislation.

# Article (5)
## Shareholders and Employees Signing on Behalf

The number of shareholders of the non-profit company shall not be less than seven shareholders, with a board of directors consisting of at least five members. The number of employees signing on behalf of the company's operations and accounts shall not be less than two individuals combined.

# Article (6)
## Capital of the Non-Profit Company

1. The capital of the non-profit company must be sufficient to achieve its objectives, according to the type of its activity, and in accordance with the provisions of related legislation.
2. The non-profit company must provide the Registrar, within sixty days from the date of its registration, with evidence that shareholders have paid the value of the non-profit company's capital from their private bank account.

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# Article (7)
## Competent Authority for the Non-Profit Company

1. The non-profit company is obliged to obtain prior preliminary approval for its registration from its designated competent authority, as determined by the Registrar, before being granted registration approval.
2. The competent authority for the non-profit company has the right to verify that the company's operations align with its objectives and goals stated in its Articles of Association and Internal Regulations.
3. In the event that no competent authority is associated with the non-profit company's activity, the Registrar is competent to make the appropriate decision regarding registration or non-registration.
4. Competent authorities are obliged to follow up on the implementation by the non-profit company of projects and activities for which it previously obtained funding, in accordance with its plans and strategies.

# Article (8)
## Financial and Administrative Reports

1. The non-profit company shall keep special records of its meetings, decisions, income and expenses, all assets, and activities carried out or to be carried out in pursuit of its objectives.
2. The non-profit company must submit an annual report to the Registrar regarding its operations and activities, sources of funding, accompanied by its budget certified by the employees signing on behalf of the non-profit company and its auditor.
3. Non-profit companies are obliged to submit periodic technical, financial, and administrative reports to the competent authority for the non-profit company every three months. These reports shall include the stages of implementation of projects and activities for which the non-profit company previously obtained funding.
4. Upon the transfer of shares of any shareholder to another person for any reason, they shall not receive compensation exceeding the amount paid for those shares.
5. The non-profit company is obliged to open a tax file with the tax authorities. It must provide the Registrar with evidence of opening the file within three months from the date of registration for new non-profit companies, and within three months from the date this System comes into effect for non-profit companies registered before the issuance of this System.
6. The non-profit company is obliged to open a bank account within Palestine licensed by the Palestine Monetary Authority.

# Article (9)
## Prohibitions on Shareholders

Any shareholder in the non-profit company is prohibited from doing the following:

a. Having a direct interest for themselves or any of their relatives up to the fourth degree with any for-profit company executing their projects.

b. Receiving any salaries, bonuses, or allowances from the non-profit company in which they are a shareholder.

c. Being a member of any association working for the same objectives.

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d. Appointing any of their relatives in the non-profit company up to the fourth degree.
e. Participating in more than one non-profit company.
f. Participating in any for-profit company working in the same field as the non-profit company.

2. a. The non-profit company is prohibited from collecting or providing cash or in-kind donations within or outside Palestine, to any entity, without obtaining the Registrar's approval, according to a written request submitted to it containing detailed data.
b. The non-profit company is prohibited from participating in any for-profit company or converting its legal form to a for-profit company.

Article (10)
Returns

1. Any net returns achieved by the non-profit company are considered a surplus for it, and they may only be used to achieve its objectives and goals, and to expand its activities and increase its capital.
2. The non-profit company is prohibited from distributing any of its net returns directly or indirectly to any of the shareholders.
3. The scope of work for a single non-profit company shall not be multiple; specialization in a specific field is required. It is prohibited for it to engage in purely commercial activities.

Article (11)
Salaries and Operational Expenses

1. The non-profit company shall adopt a salary scale for its employees.
2. The total sum of salaries and operational expenses of the non-profit company shall not exceed a specific percentage of its budgets, determined annually not to exceed (25%).
3. The provision in paragraph (2) of this Article is exempted for specialized lending institutions subject to the legislation of the Palestine Monetary Authority, and non-profit companies that are exempted by a decision issued by the Council of Ministers or the Minister, according to their jurisdiction, based on the nature of the company's work and activities.
4. The non-profit company is obliged to periodically provide the Registrar with administrative reports and financial reports (financial statements).
5. The non-profit company is obliged to provide the Registrar annually with a list of names and salaries of its employees.
6. The non-profit company is obliged to open tax files for its employees in accordance with the effective Income Tax Law, and is obliged to monthly provide the Registrar with tax deductions for its employees.
7. The non-profit company is obliged to provide the Registrar with any changes occurring in the salaries of its employees within one month from the date of the change.
8. The non-profit company is obliged to periodically provide the Registrar, twice a year, with an analysis derived from its financial statements, and an analysis of its projects and their impact on society.

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Article (12)
Financial Resources

1. The financial resources of the non-profit company include gifts, donations, grants, financing, and aid, and funding sources for its projects from foreign or local entities, provided that these gifts, donations, grants, financing, and aid are unconditional.
2. Prior approval from the Council of Ministers and/or the Minister is required to accept gifts, donations, grants, financing, and aid, stating their purpose.
3. The non-profit company has the right to establish income-generating activities and projects after obtaining the Registrar's approval, provided that its returns are used to serve its objectives.
4. The non-profit company has the right to own movable and immovable property to achieve its objectives and goals, except for participating in any for-profit company.

Article (13)
Mechanism for Approving Funding Sources

The mechanism for non-profit companies to obtain approval for receiving gifts, donations, grants, financing, and aid is as follows:

1. Non-profit companies registered with the Ministry of National Economy shall submit a request to the Registrar for prior approval for gifts, donations, grants, financing, and aid using the designated form. Non-profit companies must provide the Registrar with any documents or data requested to ensure that the expenditure of gifts, donations, grants, financing, and aid aligns with the objectives and goals for which the non-profit company was established.
2. The Registrar shall review the requests submitted to it, considering the nature of expenditure and the use of gifts, donations, grants, financing, and aid requiring approval for acceptance, in accordance with the nature of the non-profit company's work, its approved internal regulations, and its objectives and goals. To this end, the Registrar may consult any government body it deems appropriate to verify the non-profit company's operations and data. The Registrar shall refer the request to the Minister with his opinion on accepting or rejecting the request within a maximum period of one week from the date the request is completed.
3. The Minister shall refer the request with his opinion to the Council of Ministers to take the appropriate decision regarding it, if the total annual amount of funding sources exceeds ($100,000) (one hundred thousand US dollars) or its equivalent in the legally circulating currency.
4. The General Secretariat of the Council of Ministers shall provide the Ministry of National Economy with a copy of the decision immediately upon its issuance.
5. The Registrar shall provide the Palestine Monetary Authority with the Council of Ministers' decision regarding the matter.
6. The Palestine Monetary Authority shall inform banks operating in Palestine of the Council of Ministers' decision.

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Article (14) Non-Profit Lending Institutions

1. The provisions of this System shall apply to non-profit lending institutions licensed by the Palestine Monetary Authority, except regarding obtaining funding, which is regulated by the instructions of the Palestine Monetary Authority.
2. The Palestine Monetary Authority shall provide the Registrar with the written specifications granted to the companies mentioned in paragraph (1) of this Article.

Article (15) Exemption of Non-Profit Companies

1. Non-profit companies are exempted by a decision of the Minister, based on the Registrar's proposal, from obtaining approval for gifts, donations, grants, financing, and aid, if their total annual amount does not exceed ($100,000) (one hundred thousand US dollars) or its equivalent in the legally circulating currency in all their bank accounts.
2. Non-profit companies are exempted by a decision of the Minister, based on the Registrar's proposal, from obtaining prior approval for gifts, donations, grants, financing, and aid once a year regarding fixed monthly operational expenses. In the event of any modification to the value of operational expenses, they must submit a request for approval again.

Article (16) Supervision of Non-Profit Companies

1. The Registrar is responsible for supervising the compliance of non-profit companies with all matters related to the implementation of the provisions of the Law, this System, and the instructions issued pursuant to it. To this end, the Registrar may commission the company's auditor or appoint another auditor or any specialized employee, at the company's expense, to audit its entries and all its operations.
2. The Ministry is obliged, in coordination with the competent authority for non-profit companies, to verify the extent to which the non-profit company's activities and programs requiring funding align with the proposed Government plan.
3. The competent authority for non-profit companies is obliged to ensure the alignment of projects submitted by non-profit companies for funding with their programs and plan, and to verify that these companies implement projects according to their vision through field audits of the projects and their submission.
4. The competent authority for non-profit companies is obliged to provide the Registrar with evidence of the compliance of non-profit companies with implementing projects according to their vision as stated in paragraph (3) of this Article.

Article (17) Liquidation of the Non-Profit Company

1. The Registrar may warn any non-profit company to rectify its status before referring it for liquidation, within a maximum period of one month from the date of the warning.

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2. In addition to the liquidation provisions contained in the Law, the Registrar may, after exhausting the period specified in paragraph (1) of this Article, refer any non-profit company for liquidation in any of the following cases: a. If it violates the provisions of the Law, this System, and other related legislation. b. If it engages in activities and operations that do not fall within its objectives. c. If any activity it engages in results in a violation of public order or public morals according to a final court judgment. d. If it does not conduct its operations for a period of one year, or suspends its operations for a period exceeding one year.
3. After completing the liquidation process, the company's funds and assets shall be distributed as follows: a. The amount of their actual contribution to the company's capital at the time of establishment shall be returned to the shareholders. If the company's funds exceed the capital after paying off shares, the distribution shall be according to each shareholder's contribution to its capital. b. If the company's funds exceed its capital, the remainder shall be returned to any non-profit company or community body with similar objectives by a decision of the Minister based on the Registrar's proposal.

Article (18) Registration of Branches of Foreign Non-Profit Companies

1. Any foreign company may register a branch in Palestine for non-profit purposes if the branch meets the conditions and requirements according to the provisions of the Law and this System.
2. The procedures applicable to the registration of a branch of a foreign non-profit company shall be the same as those applicable to the foreign company according to the Law.

Chapter Two Anti-Money Laundering and Counter-Terrorist Financing Procedures

Article (19) Competent Authorities For the purposes of organizing, supervising, and overseeing anti-money laundering and counter-terrorist financing procedures, the Registrar is considered the competent authority for non-profit companies.

Article (20) Risk Assessment The Registrar shall undertake the following:

1. Assess money laundering risks associated with the non-profit company sector.
2. Assess terrorist financing risks, including: a. Identifying the sub-group that, due to its activities, size, characteristics, or attributes, is susceptible to the risk of exploitation for terrorist financing. To this end, it may use all available relevant information sources from the authorities.

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b. Identifying the threats posed by designated terrorist entities according to the legal procedures in force in the State to non-profit companies, and the possibility of those companies being at risk or misused in supporting and financing terrorism, and then taking appropriate and effective measures to address these identified risks and reviewing them periodically to ensure their adequacy.

c. Reviewing the appropriateness and efficiency of procedures, including legislation related to non-profit companies, to prevent their misuse in supporting and financing terrorism and terrorist organizations, and working to improve them whenever necessary.

d. Periodically re-evaluating the non-profit company sector by reviewing new information about potential weaknesses in the sector that could be exploited in terrorist activities according to the laws in force in Palestine, to ensure effective implementation of procedures.

Article (21)
Supervision and Oversight of Non-Profit Companies

The Registrar shall undertake the following:

1. Ensure that non-profit companies comply with the requirements of the provisions of this Chapter and other related rules and measures for combating money laundering and terrorist financing, and verify such compliance, including monitoring their compliance with risk-based procedures according to the provisions of Article (23) of this System. To this end, it may take necessary supervisory measures, both office-based and field-based, to verify this compliance.

2. Determine the frequency and intensity of supervision in the field of combating money laundering and terrorist financing based on its understanding of money laundering and terrorist financing risks, and the degree of risk associated with non-profit companies, according to the risk assessment contained in Article (20) of this System.

3. Audit the annual financial statements issued by the non-profit company to ensure that all funds are utilized entirely and spent in a manner consistent with the purpose of the announced activities of the non-profit company.

4. Coordinate and cooperate locally with competent authorities, each within its jurisdiction.

Article (22)
Beneficiaries of Non-Profit Companies

Non-profit companies identified within the sub-group according to the provisions of Article (20) of this System must, to ensure that the non-profit company is not exploited or that charitable funds are not used to finance and support terrorists and organizations, take the following two measures:

1. Obtain the identity of the beneficiaries of the non-profit company and associated non-profit companies.

2. Document the identity of its main donors, ensuring the confidentiality of their information.

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Article (23)
Risk-Based Procedures

The Registrar may apply the following two measures:

1. Require non-profit companies not in the sub-group specified according to the provisions of Article (20) of this System to apply the measures stipulated in Article (22) of this System, either fully or partially, in proportion to the nature and degree of risk associated with them.

2. Take any additional measures it deems appropriate to limit the exploitation of non-profit companies in financing terrorism or money laundering, in proportion to the nature and degree of risk associated with them and its changes.

Article (24)
Competence and Suitability Criteria

1. It is a condition for registering a non-profit company that its founder meets the following competence and suitability criteria:

a. Has not been convicted by a final court judgment of crimes of theft, fraud, embezzlement, forgery, bribery, breach of trust, or any crime compromising honor or public morals, or any crime of money laundering or financing of terrorism, unless their reputation has been restored.

b. Has not been declared bankrupt or unable to pay debts such that they became insolvent.

2. The conditions contained in paragraph (1) of this Article shall apply to the persons specified in Article (26) of this System.

Article (25)
Registration of Basic Information

In addition to the provisions contained in the Law, the Registrar shall register the following basic information, taking into account the legal form of the non-profit company:

1. Name of the non-profit company, its status, and proof of establishment.

2. Address of the main office or main place of work. If the non-profit company is foreign, the name and address of its legal representative in the State must be stated, along with evidence thereof.

3. Articles of Association or Bylaws and Internal Regulations, or any other similar documents.

4. Names of persons holding senior management and board positions in the non-profit company, and a list of directors.

Article (26)
Obtaining and Identifying Beneficial Owner Information

Non-profit companies must obtain information regarding their beneficial owners and declare it to the Registrar. Beneficial owners shall be identified according to the following sequential approach:

1. Obtain the identity of the natural person who has an ownership share equal to or greater than (25%) of the shares of the non-profit company, either directly or indirectly, or the natural person who exercises actual control over the non-profit company through ownership shares or through membership.

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2. After applying paragraph (1) of this Article, if there are still doubts about identifying the beneficial owner, or when no actual control is exercised through ownership shares or through membership, the identity of the natural person who exercises control over the non-profit company through means other than ownership or membership must be obtained.

3. In the event that the natural person is not identified under the application of paragraphs (1) and (2) of this Article, the identity of the natural person holding the position of a senior administrative official must be obtained.

Article (27) Record Keeping

1. Non-profit companies must keep the following information:

a. Information regarding the objectives of their announced activities and their purpose. b. All records containing detailed local and international transactions for a period of at least (10) years from the date of the transaction, to verify that funds were received and spent in accordance with the company's purposes and objectives. c. The basic information referred to in Article (25) of this System. d. Register of its members and the nature of voting rights. e. Register of its members and shareholders, including the number of shares owned by each shareholder and share classes, including the nature of voting rights associated with them. f. Beneficial owner information referred to in Article (26) of this System.

2. The non-profit company must keep the information stipulated in paragraph (1) of this Article accurately and sufficiently at its main office and update it promptly. In the case of foreign non-profit companies, it must be kept at its main office within Palestine, with the Registrar being notified of the place of keeping.

3. The liquidator of the non-profit company, those managing its affairs, or other persons concerned with the dissolution of the non-profit company must keep the information referred to in paragraph (1) of this Article for a period of at least (10) years from the date of dissolution, liquidation, or cessation of existence of the non-profit company.

4. The Registrar must keep all basic information and beneficial owner information stipulated in Articles (25) and (26) of this System, and any data obtained pursuant to the provisions of this Chapter, accurately, sufficiently, and promptly updated, for a period of at least (10) years from the date of dissolution, liquidation, or cessation of existence of the non-profit company.

Article (28) Controls and Reports

Non-profit companies must:

1. Register changes occurring to the basic information or beneficial owner information stipulated in Articles (25) and (26) of this System with the Registrar, according to the periods specified in effective laws.

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2. Establish necessary and material controls to ensure that all funds are utilized entirely and spent in a manner consistent with the purpose of the announced activities of the non-profit company and its objectives.

3. Issue an annual financial report audited by a certified auditor, including detailed data on revenues and expenses, and submit it to the Registrar for audit.

Article (29) Cooperation and Coordination

1. The non-profit company must cooperate and coordinate with the Registrar to the greatest extent possible in identifying beneficial owners by providing all basic information and information regarding beneficial owners stipulated in Articles (25) and (26) of this System, as well as the information stipulated in paragraph (1) of Article (27) of this System, to the Registrar promptly.

2. The non-profit company must provide the information referred to in paragraph (1) of this Article promptly to the Registrar through members of the company's board of directors or its resident manager in Palestine. The company may authorize another natural person, lawyer, or any other regulated profession who is responsible to the Registrar for providing such information to him or providing any additional assistance, provided that the authorized person is registered in the State of Palestine.

Article (30) Making Information Available to the Public

The Registrar must make information regarding non-profit companies available to the public as follows:

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.1 Making the basic information stipulated in Article (25) of this System and any changes thereto available to the public, by dedicating a window on their websites and ensuring its timely update.

.2 Making explanatory information regarding non-profit companies available to the public, including:

a. A description of their various types or forms and their essential characteristics. b. Clarification of the procedures for their establishment and registration. c. Clarification of the company's procedures for obtaining the basic information stipulated in Article (25) of this System and registering it with the Registrar. d. Clarification of the company's procedures for obtaining information regarding the beneficial owner stipulated in Article (26) of this System and registering it with the Registrar.

Article (31) Concluding Transactions through Regulated Financial Channels

Non-profit companies must execute their financial transactions through financial institutions.

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### Article (32)
#### Inspection and Examination

The Registrar shall undertake the following:

1. Providing expertise in the field of inspection and examination and the ability to inspect non-profit companies suspected of being exploited to support and finance terrorism.

2. Accessing all information regarding the management of any non-profit company, including financial information and information regarding its programs, within the context of investigation or inquiry procedures, and providing such information to the competent authorities upon request, each according to its jurisdiction, and also promptly.

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### Article (33)
#### Cooperation and Coordination at the Local Level

For the purpose of implementing the provisions of this Chapter, the Registrar must provide cooperation and coordination to the investigators to the greatest extent possible as follows:

1. Coordinating and exchanging information with competent authorities, the Unit, and authorities supervising financial institutions and specified non-financial businesses and professions, and ensuring facilitating access by those entities to information related to non-profit companies available to the Registrar under the provisions of this Chapter.

2. Enhancing and developing scientific research regarding non-profit companies and ensuring the exchange of information among the non-profit company sector, the public sector, and the private sector, thereby building relationships based on cooperation between the public sector, the private sector, and the non-profit company sector, ensuring an understanding of the risks posed by non-profit companies and strategies aimed at reducing risks, and increasing awareness and enhancing effectiveness and capabilities to combat the exploitation of non-profit companies for money laundering or terrorist financing purposes.

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### Article (34)
#### Exchange of Information

The Registrar shall adopt the necessary mechanisms to ensure the immediate exchange of information related to non-profit companies available to the Registrar under the provisions of this Chapter, with competent authorities, the Unit, and authorities supervising financial institutions and specified non-financial businesses and professions, with the aim of taking preventive measures or conducting investigations when there is suspicion or reasonable grounds for suspicion that the non-profit company:

1. Represents a destination for fundraising by a terrorist organization and/or participates in exploitation for the purpose of financing terrorism.

2. Is exploited as a channel for financing terrorism, including evading asset freezing procedures, or other forms of support for terrorist activities stipulated in the laws in force in Palestine.

3. Diverts or conceals transfers of funds allocated for legitimate purposes, which are redirected in favor of terrorists or terrorist organizations.

4. Is exploited in a money laundering crime.

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### Article (35)
#### Awareness Programs

1. The Registrar must establish awareness and cultural programs to enhance communication with the non-profit company sector and consolidate awareness among non-profit companies and donors regarding the following:

   a. Potential vulnerabilities of non-profit companies that expose them to risks of misuse in supporting and financing terrorism and money laundering crimes.

   b. Measures that non-profit companies can take to protect themselves from the risk of exploitation for terrorist financing and money laundering crimes, ensuring that non-profit companies fulfill their obligations.

2. Non-profit companies are committed to cooperating and coordinating with the Registrar to undertake the following:

   a. Applying best practices adopted by the Registrar to address vulnerabilities, enabling them to protect themselves from misuse in terrorist financing and financing of terrorist organizations.

   b. Establishing clear policies to enhance transparency, integrity, and public trust in their management.

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### Article (36)
#### Screening Laws and Implementation of UN Security Council Resolutions

1. The Registrar must screen the name of the non-profit company, the names of its founders, members, and beneficial owners against the listing issued by the UN Security Council Sanctions Committee, before approving the registration of the non-profit company and monitoring it periodically.

2. The Registrar must implement immediately the resolutions issued by the UN Security Council Sanctions Committee regarding the non-profit company sector.

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### Article (37)
#### Feedback

The Registrar cooperates with the Unit and authorities supervising financial institutions and specified non-financial businesses and professions in developing guiding initiatives and providing feedback that would help financial institutions and specified non-financial businesses and professions apply anti-money laundering and counter-terrorist financing measures related to the non-profit company sector, specifically those related to detecting and reporting suspicious transactions and activities.

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### Article (38)
#### Allocation of Resources

For the purpose of implementing the provisions of this Chapter, the Registrar, competent authorities, and the Unit must:

1. Allocate the necessary human, financial, and technical resources for supervision, oversight, and investigation of the non-profit company sector, each according to its jurisdiction, commensurate with the level of money laundering and terrorist financing risks of the non-profit company sector, the size of the sector, and its complexity.

2. Continuous qualification and training of human resources for the purpose of combating money laundering and terrorist financing.

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Article (39)
International Cooperation Regarding Non-Profit Companies

The Registrar and competent authorities must provide international cooperation as follows:

1. Providing international cooperation promptly regarding basic information and information regarding beneficial owners of non-profit companies, based on bilateral or multilateral agreements or memoranda of understanding or the principle of reciprocity, and in a manner that does not conflict with the laws and regulations in force in Palestine, through the Ministry of Justice and the Ministry of Foreign Affairs and Expatriates, including:

a. Facilitating access to basic information available in the records registered with the Registrar or available to competent authorities.

b. Exchanging information about members in non-profit companies, and shareholders for non-profit companies.

c. Competent authorities using their investigative or inquiry powers to obtain beneficial owner information on behalf of the foreign counterpart.

2. Issuing appropriate procedures to respond to international requests regarding obtaining information about any non-profit companies suspected of financing terrorism and money laundering crimes or any other forms of support for terrorism stipulated in the laws in force in Palestine.

3. Monitoring the quality of assistance received from other countries in response to requests for basic information and beneficial owner information of non-profit companies, or requests for assistance in locating beneficial owners residing abroad.

Chapter Three
Final Provisions

Article (40)
Disciplinary Measures Imposed on Non-Profit Companies

1. Without prejudice to any specific measures stipulated in any of the other laws, and if the Registrar discovers any violation committed by the non-profit company of the obligations imposed on it under the provisions of Chapter Two of this System, or based on what is referred to it by the competent authorities or the Unit, the Registrar shall take the necessary measures to impose one or more of the disciplinary measures stipulated in Paragraph (3) of this Article, according to its assessment of the severity of the violation.

2. Without prejudice to any specific measures stipulated in any of the other laws, and if the Registrar discovers any violation committed by the company of the obligations imposed on it under the provisions of Chapter Two of this System, or based on a proposal from the competent Ministry or what is referred to it by the competent authorities or the Unit, the Minister, based on a proposal from the Registrar, shall take the necessary measures to impose one or more of the disciplinary measures stipulated in Paragraph (3) of this Article, according to its assessment of the severity of the violation.

3. The disciplinary measures imposed by the Registrar and the Minister are as follows:

a. Alerting to comply with specific instructions.

b. Written warnings.

75 Electronic Reference for the Official Gazette ELECTRONIC REFERENCE FOR THE OFFICIAL GAZETTE mjr.lab.pna.ps Reference Number: 194-9-2022 Official Gazette Office
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