New Instructions on Wire Transfers
January 14, 2017. The National Committee for Anti-Money Laundering and Combating the Financing of Terrorism, which was established in accordance with the Law by Decree No. 20 of 2015 on Anti-Money Laundering and Combating the Financing of Terrorism, issued on December 1, 2016, Instructions No. 5 of 2016 on the Reporting of Wire Transfers. The Instructions were published in Issue 128 of the Palestinian Official Gazette, dated 14 January 2017. These Instructions entered into force as of the date of publication in the Palestinian Office Gazette; i.e. as of 14 January 2017.
Article 1 of the Instructions defines the wire transfer as “the incoming and outgoing wire transfer, which is executed by any agent or subagent of a wire transfer company.”
Article 3 obliges banks to provide the Financial Monitoring Unit with daily reports on all wire transfers incoming and outgoing to or from Palestine, the amount of which equals or is in excess of 500 US dollars or its equivalent in other currencies, including all data of the wire transfer, regardless of whether the wire transfer is executed through the bank itself or by granting a sub-agency to any financial or banking institution.
These Instructions are applicable to all banks operating in the State of Palestine and which are licensed to operate by the Palestine Monetary Authority.
It is noted that the Instructions seek to bridge any gaps, through which funds may be smuggled. These fall within the framework of monitoring bodies’ pursuit to tighten oversight and control over the movement of funds from and to Palestine. It is also noted that the Instructions require submission of reports even in regard of the wire transfers of low amounts (500 dollars or above).
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