The role of the Palestine monetary authority in combating money laundering
| DOI | https://doi.org/10.1108/JMLC-09-2020-0106 |
| Published date | 07 June 2021 |
| Date | 07 June 2021 |
| Pages | 762-774 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Husameddin Alshaer,Muhamad Helmi Md. Said,Ramalinggam Rajamanickam |
The role of the Palestine monetary
authority in combating
money laundering
Husameddin Alshaer,Muhamad Helmi Md. Said and
Ramalinggam Rajamanickam
Faculty of Law, National University of Malaysia, Bangi, Malaysia
Abstract
Purpose –This paper aims to highlight therole of the Palestine Monetary Authority (PMA) in combating
money laundering.The discussion will focus on the sectors under the PAM authority by examiningthe issued
instructions.
Design/methodology/approach –The current study is a pure legal study. The methodology used in
this paper is the qualitative approach by focussing on the doctrinal mechanism. Thus, it focussed on
procedures,processes, laws, and regulations.
Findings –This paper found seriousorganisational inefficiencies within the governanceframework of anti-
money laundering (AML) for both the currency exchange and specialised lending institutions sectors.
Moreover, the PMA’s role in combating money laundering is insufficient where its efforts are limited by
random inspectionvisits and the installation of surveillancecameras in the money changers shops.
Practical implications –The findings mayinfluence both the currency exchange and specialized lending
institutions sectors to adopt a more vigilant approach to prevent the occurrence of money laundering in
Palestine and to undertake more responsibility in ensuring compliance with the current AML legal
framework. The study also highlighted that their current practice might place them in danger of non-
compliance.
Originality/value –The paper demonstrated in, an exceptional way, the role of the PMA in combating
money laundering by focussing on both legal and regulatory requirements for the three sectors under the
PMA supervision authority. This paper made a valuable contribution to the study of combating money
launderingin Palestine, where it is one of the first studies dealing with this issue involvingthis country.
Keywords Legal, Money laundering, Banking sector, Palestine monetary authority
Paper type Research paper
1. Introduction
The process of ensuring large amounts of dirty money, generated by criminal activity,
appears to be clean is called the crime of money laundering (Sundarakani and Ramasamy,
2013, p. 93). Criminal activities are considered as predicate offences, which could be drug
trafficking, terrorist fundingor other similar crimes. Moreover, the operation of legitimizing
the criminal proceedsis a crime by itself (Alldridge, 2016, p. 193).
Traditionally, the process involved in the crime of money laundering has three stages.
Placement is the first stage where criminals introduced their criminal proceeds in the
financial system. Then the process of washing the criminal proceeds and disguise its
ownership and source, whichis called the layering stage, is the second stage. The third stage
Funding: The research article is funded by TAP-K022384 UKM, National University of Malaysia.
JMLC
24,4
762
Journalof Money Laundering
Control
Vol.24 No. 4, 2021
pp. 762-774
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-09-2020-0106
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