Palestinian Monetary Authority to SadaNews: Customer Funds Transfers and Financial Transactions in Palestinian Banks with the Outside World Are Not Executed Through Israeli Banks

Special to "SadaNews": The Palestinian Monetary Authority confirmed that there is absolutely no truth to the rumors circulating on various platforms linking the Israeli side's threat to sever banking relations with the banks operating in Palestine and any repercussions for keeping the Palestinian banking system operating as usual through the "SWIFT global" system.

The Monetary Authority indicated to "SadaNews" that financial operations and transfers between the banks operating in Palestine and countries around the world continue, even if the Israeli side resorts to severing banking relations with the public banks in Palestine.

The Monetary Authority pointed out that transfers and financial transactions concerning customers in Palestinian banks with the outside world are not executed through Israeli banks.

Here are some inquiries made by "SadaNews" to the Monetary Authority:

*How are financial transfers from and to Palestine and vice versa carried out? What is the truth about the need for Israeli approval for these transfers?

Firstly: Transfers to and from Palestine with the outside world are executed through the SWIFT global system, and financial coverage is executed through a network of correspondent banks around the world. The SWIFT system connects banks globally through encrypted messages under which transfers and payments are made securely and quickly.

Secondly: Incoming and outgoing transfers with the outside world do not pass through Israeli banks, and the details are not disclosed by any party except the correspondent banks.

Thirdly: Financial transfers between Palestinian banks and Israeli banks are conducted only in shekels, and financial transfers between the two parties do not require prior approvals from any Israeli entity.
 
What is the ceiling for financial transfers that do not require security clearance?

According to the existing legal and regulatory framework in the State of Palestine:

Firstly: There are no ceilings for financial transfers, and transferring money does not require any approvals from any security entities.

Secondly: Executing a high-value financial transfer necessitates declaring the sources of funds and fulfilling due diligence requirements.

How is oversight on financial transfers conducted and aligned with international standards, and who determines these standards?

Firstly: Financial institutions apply the principle of oversight on the execution of transfers, and institutions have measures, controls, and systems that enable them to monitor transfers and their compatibility with the account holder's activity to avoid any potential risks that may threaten the stability and correspondent banking relations.

Secondly: The Monetary Authority issues regulations governing the issuance and reception of financial transfers in accordance with best practices and standards of sound banking operations.

 Is there any relationship between the correspondent banks with the Israeli side and the financial dealings of Palestine with the world?

Financial transfers and transactions concerning customers in Palestinian banks with the outside world are not carried out through Israeli banks.

It is noted that the guarantees provided by the Israeli government to the correspondent banks "Hapoalim" and "Discount" that are linked to the banks operating in Palestine will end tomorrow, Sunday, amidst threats from Israeli Finance Minister Bezalel Smotrich not to renew the guarantee writings, which would mean severing banking relations with the Palestinian side.

Reliable sources indicated that no clear decision has yet emerged from the Israeli government regarding the possibility of renewing the guarantees, with expectations of an Israeli government meeting tonight to discuss this issue.