West Bank Country Summary
Sanctions
US and Israel have issued guidelines re transactions with Palestine
FATF AML Deficient List
No but Mutual Evaluation not yet undertaken
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF status
The West Bank/Gaza Strip is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
A Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards has not yet been undertaken for the West Bank/Gaza Strip.
Sanctions
The US has established guidelines for transactions with the Palestinian Authority, while Israel enforces restrictions on movement and goods within Palestinian territories. The Arab League has imposed sanctions on Syria, including cutting off transactions with its central bank and halting funding for projects there.
Additionally, the Arab League has a systematic boycott against Israel to economically isolate it in support of the Palestinians, which includes three tiers of restrictions on trade and business dealings. The implementation of this boycott varies among member states, and the Arab League maintains a blacklist of firms that engage with Israel.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 25 |
A September 2022 poll indicates that the Palestinian public perceives favoritism and nepotism as the most prevalent forms of corruption, particularly within government institutions. While the Anti-Graft Law of 2005 aims to combat corruption, the belief that access to power is necessary for business success remains widespread. Despite low reported instances of bribery, civil society and organizations like the Coalition for Integrity and Accountability (AMAN) actively promote anti-corruption efforts and raise public awareness.
Economy
The Palestinian economy in the West Bank is characterized by a nominal GDP of just over $19 billion as of 2022, facing significant challenges due to restrictions on movement and access, particularly exacerbated by the events of October 7, 2023, which led to a sharp economic downturn. The economy is heavily reliant on trade with Israel, with approximately 90% of exports directed there, resulting in a substantial trade deficit of $6.2 billion in 2023. Despite a well-educated labor force and a high literacy rate, unemployment remains high, particularly in Gaza, with overall rates reaching 46% following the recent conflict.
The investment climate in the West Bank is significantly hindered by ongoing Israeli restrictions on movement and access, which have intensified following the events of October 7, 2023, leading to a sharp economic downturn. Foreign direct investment remains low, representing only 1 percent of GDP, with most investments channeled into low-productivity sectors due to high transaction costs and political uncertainty. Despite the challenges, the Palestinian Authority has enacted reforms, such as the updated Companies Law, to improve the business environment and attract foreign investment.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
