The MENAFATF held a high-level meeting with the State of Palestine to discuss the latest developments related to strengthening the effectiveness of the national AML/CFT system, and shared priorities for the coming period.

The MENAFATF delegation was headed by His Excellency Hamed Saif Al Zaabi, MENAFATF President, and included Her Excellency Sheikha Mai bint Mohammed Al Khalifa, MENAFATF Vice-President, and His Excellency Suliman bin Rashid Al Jabrin, MENAFATF Executive Secretary.

The Palestinian Delegation was headed by His Excellency the Chairman of the National Committee/Governor of the Palestinian Monetary Authority, Mr. Yahya Shennar, and included His Excellency Undersecretary of the Palestinian Ministry of National Economy, Engineer Bashar Al-Saifi, His Excellency the Undersecretary of the Ministry of Foreign Affairs and Expatriates, Dr. Omar Awadallah, and His Excellency the Director of the Palestinian FIU, Dr. Firas Morrar.

The meeting addressed national efforts to develop legislative and institutional frameworks and enhance compliance with FATF Standards. It also provided an opportunity to discuss national priorities for the next phase, particularly the implementation of the National AML/CFT Strategy, which stems from the results of updating the national and sectoral risk assessments in the State of Palestine.

The Palestinian side presented the progress made in implementing national priorities, including developing legislation, enhancing coordination among relevant national bodies, and consolidating the adoption of a risk-based approach by the relevant authorities and the private sector, in addition to continuing to implement a comprehensive national project for capacity building in the ML/TF field.

The meeting also addressed the current circumstances and economic challenges facing the State of Palestine, and their implications for the banking sector, particularly the challenges related to the continuity of correspondent banking relationships, in light of specialized reports issued by MENAFATF and relevant international bodies, which highlighted the measures taken and the progress made in enhancing the effectiveness of the AML/CFT system, especially at the level of the financial sector.

Commenting on the meeting, His Excellency Hamid Saif Al Zaabi, MENAFATF President, said: “We highly appreciate the continued efforts made by the State of Palestine to strengthen its national system, despite the exceptional circumstances and challenges. The Palestinian authorities’ continued development of legislative and institutional frameworks, updating its risk assessment, and strengthening national coordination and capacity building reflect a serious institutional commitment to protecting the integrity of the financial system and enhancing the effectiveness of the national system.”

His Excellency pointed out that the stability of correspondent banking relationships and the continuity of official and secure financial channels represent an important element in supporting legitimate economic activity and enhancing confidence in the financial system, stressing the importance of continuing regional and international support for Palestinian efforts and building on the progress achieved, in order to help national authorities implement their priorities during the next stage.

His Excellency stressed that this meeting comes within the framework of MENAFATF’s approach based on supporting member countries and enhancing direct communication therewith, based on the fact that the MENAFATF’s role is not limited to evaluation, but extends to providing technical support, exchanging experiences, building capacities, and assisting countries in transforming international standards into practical results that enhance the effectiveness of their national systems, noting that the success of any member country in this path represents a success for the MENAFATF and the entire region.

For his part, His Excellency Mr. Yahya Shennar affirmed the State of Palestine’s commitment to implementing FATF’s requirements, foremost what was included in the State of Palestine’s report on Technical Compliance with the forty recommendations, and the report on the effectiveness of AML/CFT measures and correspondent banking relationships, in addition to the reports issued by the relevant international bodies.

His Excellency noted that the adoption of the updated national and sectoral risk assessment, and the resulting comprehensive national plan, reflects a high-level political commitment to enhancing the effectiveness of AML/CFT measures, and engaging with international partners to implement national priorities, including preparing for the mutual evaluation process of the State of Palestine according to the specified timetable.

His Excellency stressed the commitment of the Palestinian banking sector to international compliance standards, considering them the cornerstone of the safety and soundness of the financial system and enhancing confidence therein at the regional and international levels, despite the difficult reality that the State of Palestine is experiencing.

Both sides agreed on the importance of continued cooperation and coordination between the State of Palestine and the MENAFATF, in support of efforts to protect the Palestinian financial system and enhance the effectiveness of the national AML/CFT system.

In conclusion, His Excellency Mr. Yahya Shennar expressed his thanks and appreciation to His Excellency Hamed Saif Al Zaabi and his accompanying delegation for their continued support and interest in holding this important meeting, especially in light of the current circumstances, appreciating the role of MENAFATF in developing anti-money laundering and counter-terrorism financing systems in member countries, including the State of Palestine.