Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instruction No. (8) of 2021

Regarding Payment Orders

Based on the provisions of Law No. (17) of 2012 concerning the National Payments Settlement Law, particularly Articles (5) and (9) thereof, and extending from what the Board of Directors of the Palestine Monetary Authority approved in its meeting No. (236) dated 2021/06/23, and in pursuit of the public interest, we have issued the following Instructions:

Chapter One

Definitions and Scope of Application

Article (1)

Definitions

The words and phrases contained in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

• The Authority: The Palestine Monetary Authority.
• Payment Services: All services related to sending, receiving, and executing payment orders in any currency.
• Service Provider: The company licensed by the Authority to provide payment services.
• User: The person who uses payment services as a payer or beneficiary.
• Person: A natural or legal person.
• Payer: The person issuing a payment order through the Service Provider.
• Beneficiary: The person receiving the funds of the payment order through the Service Provider.
• Payment Instrument: An instrument or procedures agreed upon between the payment service user and the payment service provider to issue payment orders.
• Payment Order: Instructions from the Payer or Beneficiary to the Service Provider requesting the execution of a payment transaction.

Article (2)

Objective and Scope of Application

1. These Instructions aim to regulate payment orders executed through the Service Provider in a secure and transparent manner.
2. The provisions of these Instructions apply to all companies licensed by the Authority to provide payment services.

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Chapter Two

Payment Orders

Article (3)

Approval of Payment Order

1. A payment order is considered issued by the Payer upon their approval according to the means and procedures agreed upon with the Service Provider.
2. A payment order may be executed through the Beneficiary provided that the Payer consents, in accordance with the means and procedures agreed upon with the Service Provider.
3. The Service Provider is responsible for proving the validity of the approval to issue a payment order.

Article (4)

Execution of Payment Order

The Service Provider must adhere to the following when executing payment orders for the User:

1. Execute the payment order issued by the Payer immediately upon receipt, unless the Payer requests otherwise.
2. Execute the payment order correctly as received from the User, and take necessary corrective actions for payment orders executed incorrectly.

Article (5)

Cancellation of Payment Order

1. The Payer is prohibited from cancelling a payment order issued by them once it has been received by the Service Provider.
2. Subject to what is stated in Article (3) paragraph (2) of these Instructions, the Payer is prohibited from cancelling a payment order issued by the Beneficiary after it has been sent.

Article (6)

Refusal and Suspension of Payment Order

1. The Service Provider must suspend a payment order without consulting the User in any of the following cases:

   a. In the event of suspicion of fraud and/or money laundering and/or terrorist financing and/or execution of illegal activities.

   b. Upon request from competent regulatory or judicial authorities.

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Article (7)

Information on Issued Payment Order

The Service Provider must provide the following information to the Payer through the agreed means before and after issuing the payment order:

1. A unique reference number specific to the transaction.
2. The type of service.
3. The value and currency type.
4. Fees and commissions charged.
5. The exchange rate applied in case of conversion between currencies.
6. The date and time of execution of the payment order.
7. Beneficiary details.

Article (8)

Information on Payment Order Received by Beneficiary

The Service Provider must provide the following information to the Beneficiary through the agreed means immediately upon receiving the payment order:

1. A unique reference number enabling the Beneficiary to identify the payment order.
2. The value and currency type.
3. Fees and commissions charged.
4. The date and time of posting to the account.
5. The type of service.
6. Payer details.

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Article (9)

Loss or Theft of Payment Instrument

1. The Service Provider must implement appropriate procedures to suspend the payment instrument immediately upon the User notifying them of theft or loss.

2. The Service Provider must issue a new payment card for the User in the event of theft or loss.

3. The Service Provider bears full responsibility for any transactions executed using a lost or stolen payment instrument in the following cases:

   a. Failure by the Service Provider to provide suitable and effective means for the User to report the loss or theft of the payment instrument, in accordance with the Authority's instructions.

   b. From the moment the User notifies the Service Provider through the agreed means of the loss or theft of the payment instrument, and until it remains in effect.

Article (10)

Currency Conversion

Currency conversion operations are limited to the Electronic Account Maintenance account for the value of payment orders during the execution process.

Article (11)

Repeal

1. Instruction No. (5) of 2020 Regarding Payment Orders is repealed.
2. Anything inconsistent with the provisions of these Instructions is repealed.

Article (12)

Implementation and Enforcement

All competent authorities must implement the provisions of these Instructions, each within their respective jurisdiction, and they shall apply from the date of their issuance.

Issued in Ramallah on 2021/06/23 AD

Dr. Firas Al-Malham
Governor

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