I am pleased to confirm that Palestine Islamic bank reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption.
In this annual Communication on Progress, We describe our actions to increase compliance with the Global Compact and its principles and incorporate them into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

Yours Sincerely

Maher Masri
Chairman of board

Palestine Islamic Bank (PIB) abides by all provisions of the Global Charter for Human Rights, local laws and covenants that guarantee the rights of individuals. PIB follows procedures, policies and a code of conduct that adopts equality and rejects discriminatory measures, and this is applicable to all its daily actions and operations. PIB requires that all its partners and suppliers adhere to these principles and codes of conduct.

PIB is committed to provide its services to all citizens on the belief that every citizen has the right to receive banking services through a network that includes 45 branches and offices and 85 ATMs that cover all Palestinian areas. This geographic coverage comes in accordance with the financial inclusion policy adopted by the Palestinian Monetary Authority (PMA). PIB’s working procedures enable any person to submit notes, comments or complaints through anonymous complaint boxes located in its branches or through its social media, digital channels and contact center.

PIB’s internal code of conduct prohibits its employees from all forms of discrimination based on race, color, gender, geographical region, age, disability, political views, opinions, or religious beliefs.

During 2019, PIB implemented 122 projects and partnerships with many institutions that provide help and support in the areas of health, education, relief, development, children, women empowerment, and supporting people with disabilities. These projects and partnerships were within the scope of the bank’s social responsibility program that aims to create sustainable impact in the community.

One of PIB’s main priorities is providing support for people with disabilities within the framework of its social responsibility program, by providing support to organizations that care about people with disabilities. When designing branches, offices, and facilities, PIB takes into consideration the needs of the physically handicapped. Its ATMs are suitable for users that are visually impaired. PIB works on increasing the skills of its staff and providing regular training on human rights and dealing with people with disabilities with the aim of ensuring access to equal banking service for all clients of this category and enabling them to manage their banking affairs with ease and privacy in accordance with the instructions of the Palestinian Monetary Authority issued in this regard. PIB also provides people with disabilities equal opportunities in competing for employement as they form an integral part of its team in line with the provisions of Law No. 4 of 1999 regarding the rights of people with disabilities in Palestine.

PIB greatly consider providing its staff with suitable working conditions intended to preserve their health and psychological rights and wellbeing.

PIB grants women equal opportunities in competing for employment. During 2019, the number of female employees in PIB was 176 out of a total of 664 employees, where many of them are in supervisory and leadership roles.

Commitment for implementing human rights values and principles is monitored by a specialized department where periodic reports are submitted to the executive management. Violations or breaches are addressed immediately, and necessary measures are taken to ensure their non-recurrence.

In addition to its adherence to all provisions stated in the Palestinian Labor Law, including employment anti-discrimination and child labor, PIB abides by all international covenants related to workers’ rights and working conditions, especially the United Nations Global Compact.

PIB applies all that is related to workers’ rights as stated in the Palestinian Labor Law and confirms in its internal organizational procedures the employees’ rights to fair treatment, equality, and non-discrimination. PIB adopts an open policy for communication between employees and management and is committed to pay its employees higher rates than the minimum wages, as well as providing health insurance for them and their families to ensure optimal healthcare.

PIB adopts appropriate and objective criteria based on efficiency when hiring its employees and rejects any other procedures that might violate these standards and procedures.

PIB is keen on developing the efficiency and skills of its employees and enabling them to develop and increase their expertise by providing them with the necessary training in their field of work, whether internal or external, and in various fields. During 2019, the bank organized 68 internal and local training courses and 8 external courses. The bank also created career paths for its employees intended to qualify them to develop within the organization and allow them to balance between their ambitions and the tasks they perform.

PIB continuously enhance communication among its staff by organizing regular meetings and recreational activities between them; additionally the bank has created a special group for the purpose of social communication between employees on Facebook.

Specialized departments review and evaluate the compliance with all laws and regulations related to the work environment and workers’ rights. These departments submit regular reports to management for review and to address any issues or violations as they happen.

PIB adopts the principles of the United Nations Global Compact on the Environment and is committed to all local laws and procedures related to this aspect. Preserving the environment is one of the Bank’s strategic goals and part of its social responsibility program.

PIB works to preserve the environment in multiple pillars, foremost is investing on clean energy to operate its branches and offices. Currently, computers, lighting, ATMs, and other devices operate on the solar energy system. The Bank has installed an automatic cleaning system for its solar panels, which provides greater efficiency of its panels and guarantees an increase in its production by 10%.

The number of sites benefiting from solar energy has reached 15 branches and offices while the rate of production is 1.6 megawatts of electricity annually. It is estimated that the emissions of harmful gases that are avoided by using clean energy annually are 2912 tons of carbon dioxide, 7 tons of nitrogen oxide gas and 62 kg of Sulfur dioxide gas.

The Bank’s digitization strategy for services and internal processes played an important role in reducing the amount of paper used in various transactions. The Bank has also replaced lighting and energy-consuming devices with energy-saving ones. PIB educates its employees on how to preserve energy consumption.

Within its social responsibility program, the Bank has recently established eight desalination plants in the Gaza Strip, which contribute to providing clean water for thousands of people.

PIB also encourages its employees to volunteer in community services that assist in the contribution and preservation of the environment throughout special internal programs. During 2019, the Bank’s employees participated in several activities for planting trees and cleaning public facilities aimed at protecting the environment.

Through these environmentally friendly measures and others, the Bank received the “Best Green Bank in Palestine” award for the year 2019 from the International Finance Magazine.

The Bank conducts, through the relevant departments, continuous evaluation of its actions in preserving the environment and submits reports to its executive management. It also implements plans to maximize the benefits of relying on clean energy and increasing its production in innovative ways that contribute to protecting the environment and reducing the damages and risks that threaten it.

PIB adopts the principles of the United Nations Global Compact related to anti-corruption and applies a special internal policy related to anti-bribery and corruption. The Bank adheres to the rules and regulations of governance in Palestine especially the Code of Corporate Governance issued by the National Committee For governance in 2009. Additionally, PIB abides to the rules and regulations for banks’ governance issued by the Palestinian Monetary Authority. To strengthen the governance system, the Bank established a guide for rules and best practices for Bank governance in accordance with the instructions and publications in force nationally and internationally.

PIB is keen to comply with the requirements of relevant national and international laws, including the US FATCA Law, in addition to directives related to anti-money laundering and combating financing of terrorism.

The Bank works to fight corruption by adhering to the laws and legislations that govern and regulate the work of the banking sector in Palestine issued by the Palestinian Monetary Authority in order to achieve the rule of “know your customer”. PIB follows proper working procedures and ethics of banking operations, it also adhere national and international laws and directives, including the International Financial Action Task Force (FATF), International Security Council, and the Basel Committee decisions related to anti-money laundering and combating financing of terrorism through updated comprehensive policies and procedures approved by the board of directors.

The Bank is also committed to implement the requirements of tax cooperation laws, including the US Tax Compliance Act for foreign accounts (FATCA) which was implemented as required by the US Department of Treasury.

By law, the bank needs to know all of his customers before even establishing any relations with them in accordance to the rule of “know your customer”. According to this rule bank obtain all information and documents that identify customers’ identity, the nature of their work, the source and size of their income, real beneficiary, address and any other information that helps in enriching the Bank’s information about customers. PIB do not deal with customers who refuse to provide the Bank with the needed information, and refrains from dealing with unidentified persons or people with fake or mock names or persons prohibited from dealing with them according to the applicable legislation, including shell banks and fake companies.

PIB applies strict policies and procedures to keep customer information confidential and secure, ensuring information protection from loss, unauthorized access, misuse, unauthorized amendment, or disclosure thereof to any external party that is not permitted by law in accordance to Palestinian Banking Law No. 9 of 2010. PIB also applies strict administrative and legal disciplinary procedures to anyone who violates the Bank’s privacy policy.

PIB’s Board of Directors consists of 11 members, including three independent members and shareholders’ representatives. The Board’s formation meets the conditions related to the formulation and qualifications as stated in the Governance Guide issued by the Palestinian Monetary Authority, which guarantees the participation of all shareholders in decision making.

Relevant departments prepare periodic reports about the Bank’s commitment to all requirements related to fighting corruption nationally and internationally, foremost of which are the principles of the United Nations Global Compact on Anti-Corruption. The reports are then submitted to the Board’s Audit Committee to review them and address the issues, if any. PIB regularly pursue the updates of national and international anti-corruption instructions and directives through specialized departments.