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Palestine: fintech & payments regulation

Regulated

VASP licensing under Law 41/2022; PMA oversight with cash reduction push

Lead regulator:
Palestine Monetary Authority
Key law:
Law No. 41 of 2022 concerning National Payments
Last updated:
2026-07-12

The Palestine Monetary Authority (PMA) regulates fintech and payments under Law No. 41 of 2022, which mandates licensing for all payment service providers, electronic financial transfers, and virtual assets. The regulatory framework is supported by specific decrees for money changers (Law No. 40 of 2022) and specialized lending institutions, alongside detailed operational circulars covering instant payments (iBURAQ), electronic invoicing (E-SADAD), and digital identity (iDplus). Recent directives emphasize a strategic shift toward non-cash transactions, including a 30,000 NIS cash ceiling and mandatory electronic payment adoption in government sectors.

The PMA enforces strict licensing and supervision for banks, payment service companies, money changers, and digital banks, with specific capital requirements such as $25 million for digital banks. The regulator actively manages the national payment infrastructure, including the National Key System (PNS194) and the iBURAQ instant payment system, while implementing robust anti-fraud and cybersecurity measures. The regulatory environment is characterized by frequent circulars updating operational standards, fee structures, and compliance requirements for licensed entities.

Who regulates

  • Palestine Monetary Authority

    Primary supervisor for banking, payments, money changers, and fintech licensing.

    [1][2][3]

Core laws & rules

  • Law No. 41 of 2022 concerning National Payments (2022)

    Comprehensive legislation regulating national payments, electronic financial transfers, digital identities, and virtual assets, mandating licensing for all payment service providers.

    [1]

  • Law Decree No. 40 of 2022 (2022)

    Establishes the licensing, supervision, and operational standards for money exchange businesses, including capital adequacy and anti-money laundering requirements.

    [4]

  • Law Decree No. 4 of 2026 (2026)

    Reduces cash usage by establishing a 30,000 NIS transaction ceiling and mandating non-cash payments for government transactions.

    [5]

Licensing & registration

  • Digital Banks

    Comprehensive licensing and regulatory framework established by Instructions No. 17 of 2024. Capital: $25 million

    [6]

  • Payment Service Companies

    Mandatory licensing under Law No. 41 of 2022 for entities providing electronic payment services, including instant payments and prepaid cards.

    [1]

  • Money Changers

    Licensing and supervision framework under Decree No. 41 of 2016 and Law No. 40 of 2022, requiring prior authorization and adequate capital.

    [3][4]

Restrictions & warnings

  • Cash payments exceeding 30,000 NIS are prohibited under Law Decree No. 4 of 2026, with government transactions mandated to be non-cash.

    [5]

  • Payment service providers are prohibited from charging fees to cardholders for point-of-sale transactions under Instructions No. 13 of 2025 and No. 4 of 2025.

    [7][8]

  • Dealing with unlicensed money changers is strictly prohibited and warned against by Circular No. 9/2024.

    [9]

Direction of travel

  • The PMA is actively promoting digital transformation through the launch of the iDplus digital identity system and the iBURAQ instant payment system, with mandatory adoption by licensed entities.

    [10][11]

  • Regulatory focus is shifting towards reducing cash dependency and enhancing electronic payment adoption, supported by new laws and frequent operational circulars.

    [5]

Sources

  1. Law No. (41) of 2022 concerning National Payments · 2026-01-01
  2. High Council - 2022 - Circular No. 276 Regarding Payment Cards · 2026-01-01
  3. Decree No. 41 of 2016 on the Licensing and Supervision of Money Changers · 2026-01-01
  4. Law No. 40 of 2022 Concerning the Licensing and Supervision of the Money Exchange Profession · 2026-01-01
  5. Law Decree No. 4 of 2026 on Reducing Cash Usage · 2026-01-01
  6. Instructions No. 17 Regarding the Licensing and Regulatory Framework for Digital Banks · 2024-01-01
  7. Instructions No. 13 of 2025 Regarding the Use of Cards in Point-of-Sale Services · 2025-01-01
  8. Palestine Monetary Authority Instruction No. 4 of 2025 on the Use of Cards at Point of Sale · 2025-01-01
  9. Circular No. 9/2024: Warning Against Dealing with Unlicensed Money Changers · 2024-01-01
  10. Circular No. (130) Mosque Care Committees · 2025-01-01
  11. Instructions No. (2) of 2025 Regarding Instant Payment System Services · 2025-01-01

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This guide is compiled automatically from 11 primary-source documents published by Palestine's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.