Measures to combat money laundering and terrorist financing in Palestine
| DOI | https://doi.org/10.1108/JMLC-02-2021-0010 |
| Published date | 10 May 2021 |
| Date | 10 May 2021 |
| Pages | 268-279 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Murrar Firas |
Measures to combat money
laundering and terrorist
financing in Palestine
Murrar Firas
Deputy Director, Financial Follow Up Unit, Ramallah, Palatine and Instructor,
Administrative and Financial Department, Faculty of Graduate Studies,
Arab American University, Ramallah, Palestine
Abstract
Purpose –The purpose of this paper is to analyse the evolutionof anti-money laundering/combating the
financing of terrorism(AML/CFT) procedures in Palestine since 2004 in accordancewith the standards issued
by the FinancialAction Task Force (FATF).
Design/methodology/approach –This study is qualitative in nature and involves studying the most
important improvements made by Palestinian authorities in the state’s legislative and institutional
frameworksto enhance the AML/CFT regime.
Findings –Palestine has established the necessary legal basis to combat moneylaundering and terrorist
financing crimes. At theinstitutional level, the Financial Follow-up Unit was grantedall the required powers
of Financial Intelligence Units. The National Committee for Combating Money Laundering and Financing
Terrorism has also playeda vitalrole in issuing policies and plans to respond to the outcomes of the National
Risk Assessment process. In contrast,a number of challenges still exist mainly with respect to the political
factors and theirexpected consequences on the process of preparing for and conductingthe mutual evaluation
process forPalestine.
Originality/value –This study focusses on the AML/CFT efforts in Palestine owing to the nature and
specificity of the Palestinian situation, as Palestine’s AML/CFT procedures have not been subject to any
previous mutual evaluationprocess by the MENAFATF. Such efforts have rarely addressedthe Palestinian
case, makingthis study important to researchers and those interested in this field.
Keywords Terrorist financing, Institutional framework, Money laundering, Palestine,
Legislative framework, Financial Follow-up Unit
Paper type Research paper
1. Introduction
Palestine began its efforts to combat money laundering and terrorist financing through the
Palestinian Monetary Authority in 2004 and established the Financial Follow-up Office
(later called the Financial Follow-up Unit, [FFU]) as a specialised agency in the field. As
these efforts have been institutionalised, the pillars of the anti-money laundering system
have been defined, and the powers and competencies have been distributed in accordance
with the provisions of the law in line with the “Forty Recommendations”issued by the
Financial Action TaskForce (FATF).
Palestine began joiningthe international and regional organisations necessary to support
and develop its anti-money laundering/combating the financing of terrorism (AML/CFT)
The author thanks Mr Wael Lafi, Financial Follow up Unit Director for his cooperation in providing
information and discussing the earlier drafts of this article. The author also thanks Ms Aseel Alqadi,
head of international relation department, Financial follow up Unit, for editing and proofreading.
JMLC
25,2
268
Journalof Money Laundering
Control
Vol.25 No. 2, 2022
pp. 268-279
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-02-2021-0010
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