Ramallah – The Coalition for Integrity and Accountability (AMAN) held a session to discuss a draft report titled “Managing Corruption Risks at the Palestinian Monetary Authority.” The session included participation from representatives of the Palestinian Monetary Authority, the Capital Market Authority, the Association of Banks in Palestine, the Ministry of Interior, the State Audit and Administrative Control Bureau, and the Anti-Corruption Commission.
Dr. Azmi Shuaibi, Anti-Corruption Affairs Advisor to AMAN’s Board of Directors, opened the session. He noted that this type of study represents a new initiative aligned with the coalition’s updated strategic framework. He emphasized the importance of the study stemming from within the institution itself, with internal administrative staff contributing to the identification of policies, procedures, and oversight priorities— based on practical challenges and areas requiring greater scrutiny. This renders the study a genuinely local product that accurately reflects the institutional work environment.
Researcher Kaid Tanbour delivered a detailed presentation on the study, clarifying that the Palestinian Monetary Authority is the principal entity responsible for regulating and overseeing Palestine’s banking sector. It plays a pivotal role in achieving economic and monetary stability, ensuring the integrity of financial operations, and reinforcing public confidence in the financial system.
The study aimed to analyze and assess the corruption risks within the Palestinian Monetary Authority by exploring the likelihood, severity, and potential consequences. It also offered practical, actionable recommendations to prevent such risks or mitigate their impact if they materialize.
The study placed particular focus on the Palestinian Monetary Authority’s General Directorate of Supervision, which comprises the Banking Supervision Department, Non-Banking Supervision, and the Market Conduct Department. These units oversee the regulation of banks, specialized lending institutions, money exchange companies, and payment service providers. The study also examined the Directorate’s role in enforcing administrative sanctions and financial penalties to ensure compliance with the applicable laws and regulatory frameworks.
A rigorous analytical methodology was employed to assess decision-making processes within these departments and to identify potential vulnerabilities in administrative and legal procedures. Risk was evaluated based on the likelihood of misconduct and its potential impact—taking into account contextual challenges, opportunities, and the effectiveness of existing internal controls in preventing or reducing corruption.
The study concluded that the likelihood of administrative deviations within the Palestinian Monetary Authority is relatively low, owing to robust oversight mechanisms and digitized procedures that provide through documentation and traceability—limiting opportunities for manipulation or unprofessional interference. However, it warned that even a low-probability deviation could seriously undermine the institution’s integrity, public trust, and the broader financial governance system.
The study underscored the value of electronic documentation in enhancing transparency and highlighted the role of internal oversight in reducing negligence and improving compliance with legal and regulatory obligations.
To further strengthen corruption risk management, the study recommended several key measures, including: Adopt a comprehensive electronic system to document all licensing procedures, enhancing internal oversight through periodic reviews to ensure integrity and transparency in licensing and sanctions, establishing a system to track employee performance and assess professional conduct regularly, organizing continuous training on ethics and corruption risk management, publishing licensing criteria and procedures on the Palestinian Monetary Authority’s website, disclosing sanctions, fines, and the reasons behind them to promote transparency, developing a more advanced risk management system within the licensing process, enforcing deterrent penalties, and bolstering cooperation with national and international oversight bodies.
The study also stressed the importance of periodically evaluating operational mechanisms, raising public awareness, and publicly posting the Monetary Authority’s internal regulations on its official website. These actions aim to enhance public access to institutional procedures and grievance mechanisms, reduce corruption risks, and position the Palestinian Monetary Authority as a model of integrity and transparency in the financial sector.
Stakeholder Remarks and Feedback
Iyad Nassar, Director of Banking Supervision at the Palestinian Monetary Authority, emphasized the absence of the “primary oversight body”—the Palestinian Legislative Council—which, he noted, casts a shadow over the integrity of the broader oversight system. He outlined three layers of oversight over the Palestinian Monetary Authority’s operation: Internal oversight by an independent unit within the Palestinian Monetary Authority; external oversight as stipulated by law; and oversight by the State Audit and Administrative Control Bureau.
Nassar explained that the Palestinian Monetary Authority submits reports to the President, and would also report to the Legislative Council, if it were active. He added that all procedures within the Palestinian Monetary Authority are governed by clear administrative hierarchies and legally mandated timelines—particularly for licensing— to prevent procedural delays that could lead to administrative deviations.
He also spoke to the role of automation in curbing human interference, noting that all electronic transactions are recorded—including the user, time, and changes made—enhancing transparency and accountability. He further pointed to the presence of robust enforcement systems and oversight mechanisms under the jurisdiction of the Human Resources Department.
Regarding the Palestinian Monetary Authority’s Board of Directors, Nassar confirmed that members annually disclose their financial disclosures. He stressed that the imposition of fines on banks—approved by the board—is immune to manipulation, as it adheres to a pre-defined procedural framework governed by the law and the nature of the infraction. He added that bank inspections are carried out by committees chaired by the Director of Inspection, under strict oversight and with clearly defined responsibilities, and are conducted only with the Governor of the Palestinian Monetary Authority’s approval.
Bashar Yaseen, Director General of the Association of Banks in Palestine, noted that such studies help promote discipline in the banking sector and reduce opportunities for administrative misconduct. He emphasized that banks operate under the Palestinian Monetary Authority’s regulations that ensure a stable and secure banking environment for all stakeholders.
Yaseen added that banking regulations are based on Basel standards, the Palestinian Monetary Authority’s law, and applicable legislation governing the Association’s work. He explained that the Association compiles stakeholder feedback and technical proposals, fostering a participatory environment that supports informed decision-making and mitigates deviations.
He also noted that some banks are subject to stricter oversight due to their systematic importance. Any enforcement action against a bank, he said, is subject to appeal before an independent committee, and that the entity taking the action cannot adjudicate its own case—ensuring impartiality.
Amjad Qubaha, representative of the Capital Market Authority, stated that licensing and sanctions are particularly sensitive issues, as they fall under the jurisdiction of the Board of Directors, while technical teams only provide recommendations. He emphasized the need for balanced decision-making and clarified the difference between corruption as a criminal offense and administrative deviation, which may be legally contested. He remarked: “Not every flawed administrative decision constitutes corruption. The law provides for appeals before the Constitutional Court, reinforcing the principle of legal oversight.”
Dr. Azmi Shuaibi reiterated the importance of safeguarding independent institutions from interference—particularly political—and argued that maintaining a balance of interests is the legislative council’s responsibility, not that of executive entities. He affirmed that any deviation from legal procedures constitutes a potential corruption risk and called for immediate release of the corruption risk report previously developed in partnership with the World Bank, which has yet to be made public despite AMAN’s persistent calls in recent years.
Dr. Shuaibi also warned that public trust in state institutions is deteriorating—not only among political elites but within the core of the state apparatus itself—amid Palestine’s complex political and economic landscape.
