Hamas was a banned "terrorist entity" under American law, "accordingly ... US persons are prohibited from engaging in transactions with the Palestinian Authority unless authorized, and may not transfer, pay, withdraw, export or otherwise deal in any assets in which the Palestinian Authority has an interest unless authorized," the notification said.

Specific licenses must be obtained "to facilitate limited transactions by US persons with the Palestinian Authority" if they are consistent with US foreign policy, the document said.

However, according to the document, there is an exception when US citizens have transactions with entities under the control of Palestinian leader Mahmud Abbas, whose support for the peace process is rejected by Hamas, which refuses to recognise Israel's right to exist.

Also permitted are transactions with bodies controlled by the Palestinian judiciary, the Palestinian Elections Commission and the Palestinian Monetary Agency, and with non-Hamas members of the Palestinian Legislative Council.

US nationals employed by the governments of Egypt, Israel and Jordan can continue to work with the PA, as can US employees of the United Nations.

Hamas, formally known as the Islamic Resistance Movement, won a large parliamentary majority in elections in January. The Hamas-led Palestinian government was sworn on March 29.