PMA Granted Authority over Payments Systems

The Palestine Monetary Authority (PMA) has been given the authority to launch a national system for clearing and settling payments, under a decree law passed by Palestinian president Mahmoud Abbas.

The central bank will be given powers to introduce a centralised system for settlement of financial transactions and automated clearing which, according to the PMA, will see a “drop of costs, saving of time, and the development of new methods and systems that will enable banks to provide modern electronic banking [e-banking] services.”

The new system incorporates mechanisms to facilitate the acceptance of electronic signatures (e-signatures), the linking of banks and their branches with an “integrated electronic communication system” and unification of legal procedures.

Governor of the central bank, Jihad Alwazir, called the decree law a “significant step” towards replacing conventional paper-based payments systems with e-payments. The PMA said that it would help promote investment in Palestine through faster circulation of currency and a safer environment for transferring funds.

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