US Treasury official speaks to Palestinian Authority PM about economic stability

Deputy US Treasury Secretary Wally Adeyemo spoke with Palestinian Authority Prime Minister Mohammad Mustafa on Monday, the Department of Treasury said in a statement. 

They discussed security and economic stability in the West Bank.

Adeyemo and Mustafa also discussed the Palestinian Authority’s attempts to improve its anti-money laundering efforts and counter the financing of terrorism, the department said.

Adeyemo “stressed the importance of preventing terrorists and violent extremists from raising, using, and moving funds in the West Bank,” the Department of Treasury said. 

The department noted the two also discussed the importance of corresponding banking relationships between Israeli and Palestinian banks to the security and economic stability of the region.

Requirements for indemnification

Israel's requirements for the indemnification needed to allow Israeli banks to continue conducting transactions with Palestinian banks have been met by the Palestinian authorities, according to a source familiar with the situation.

The source said technical experts argue that this should warrant an extension of the current indemnification—set to lapse on October 31 - for at least a year to avert an economic crisis in the West Bank.

Adeyemo noted the authority's progress on the issue, including completing key milestones for assessing risks within its jurisdiction and bolstering effective compliance with international standards, the source said.