Palestine Monetary Authority Urges Business Sector to Take Necessary Measures to Deal with New Standards of Handling Checks

His Excellency Mr. Azzam Shawwa, the Governor of Palestine Monetary Authority, said PMA was developing measures to handle using checks and that PMA would take a number of additional strict procedures to handle the problem of returned checks. The first phase of the procedures, which is expected to start within the coming few days, includes limiting consensual settlements among individuals and businesses and canceling the three month period that is currently approved for classification purposes. This phase also includes having available the legal registration of businesses by specialized parties for purposes of approving consensual settlement. 

The second phase, which is expected to be implemented before the end of the year, includes a number of procedures such as reducing the number of checks that are subject to classification and limiting ceilings for personal checks and restricting giving checks to first degree relatives of those listed in the system. Mr. Shawwa said launching the electronic clearance system this year would control using checks in accordance with the best international standards and would strengthen PMA’s procedures that would largely limit the problem of returned checks and ensuring necessary timely liquidity for the businesses sector.