Israel

New Documents

Israel Adopts COE Convention Against Human Trafficking

The Council of Europe announced that Israel became the first non-European country to agree to the Convention on Action against Trafficking in Human Beings.

June 2, 2021

Israel, UAE Sign Cooperation Agreement on Financial Services

The Israel Ministry of Foreign Affairs announced the signing of the first protocol of understanding on cooperation in banking and financial services with the United Arab Emirates. The agreement covers anti-money laundering and counterterrorist financing concerns.

September 2, 2020

Israel Securities Authority Highlights Strategic Plan to Promote Innovation in Digital Capital Markets

February 14, 2020

US Treasury Secretary Meets with Israeli Authorities on AML/CTF Efforts, Iranian Activities

October 29, 2019

Israel Securities Authority Signs FinTech MoU with Croatian Financial Services Supervisory Agency

October 7, 2019

News

Weekly Roundup: US Probes Morgan Stanley and Interactive Brokers, US Regulators Ding Cryptocurrency Derivatives Exchanges, and More

IMF calls for AML regulation of cryptocurrency industry, U.S. cryptocurrency exchanges boost compliance hiring, and more, in the weekly roundup.

October 1, 2021

Weekly Roundup: HSBC Hid Suspicious Transactions, UK Banks Directed to Report COVID-19 Fraud, and More

U.K. officials investigate online bank for AML lapses, Binance under scrutiny in India, and more, in the weekly roundup.

July 30, 2021

Weekly Roundup: EU Unveils New AML Supervisor, Santander Joins Binance Blockade, and More

July 9, 2021

Midweek Roundup: UK Government Loans Benefited Gupta Family, South Korea Seizes Cryptocurrency from Tax Evaders, and More

June 23, 2021

French Authorities Arrest Six Suspects in Coronavirus Fraud Scheme

June 23, 2021

Enforcement Actions

Bank of Israel Fines Bank Leumi Ltd. 4.2 Million Israeli New Shekels for AML/CTF Violations

According to the regulator, the Banking Corporations Sanctions Committee on anti-money laundering and counterterrorist financing issues fined the Tel Aviv, Israel-based bank for its failure to report unusual transactions to the Israel Money Laundering and Terror Financing Prohibition Authority.

June 28, 2015

Bank of Israel Penalizes Leumi Card Ltd. NIS 1.2 Million for AML/CTF Deficiencies

The Banking Corporations Sanctions Committee of the Bank of Israel imposed a monetary penalty against the credit card company based in Tel-Aviv, Israel for violating multiple requirements of the Prohibition on Money Laundering Law, 5760-2000.

October 10, 2013

Israel Issues NIS Six Million Fine Against Cartisey Ashrai Le’Israel for AML/CTF Violations

October 10, 2013

Arab Israel Bank Receives Penalty of $240,000 for Violation of Anti-Money Laundering Law

December 8, 2010

Bank of Israel Fines Israel Discount Bank 3.7 Million Shekels for AML Violations

November 3, 2008

Key Documents

Israel Enacts Law to Prevent Money Laundering, Establish FIU

August 8, 2000

Israel Imposes AML Obligations on Currency Service Providers

May 1, 2002

Israel Issues Law Prohibiting Terrorist Financing

December 29, 2004

Israel Enacts Law to Combat Criminal Organizations

June 9, 2003

Bank of Israel Amends Identification Requirements for Banking Corporations

November 8, 2006

Israeli Regulator Publishes Updated AML/CFT Rules for Banks, Adds High-Risk Countries

January 27, 2008

Israeli Justice Ministry Establishes Terrorist List

January 30, 2008

Important Facts

  • The U.S. State Department labels Israel as a jurisdiction of primary concern. Israel is not regarded as a regional financial center. The country primarily conducts financial activity with the markets of the United States, Europe and to an increasing extent Asia. Criminal groups in Israel, either home-grown or with ties to the former Soviet Union, United States or European Union often utilize a maze of offshore shell companies and bearer shares to obscure ownership. Israel’s illicit drug trade is regionally focused; Israel serves more as a transit country than a market destination. The majority of money laundered originates from criminal activities abroad, including “carousel fraud,” which involves taking advantage of international value-added tax loopholes. Proceeds from domestic criminal activity also continue to contribute to money laundering activity. Officials are still concerned about money laundering in the diamond industry, illegal online gaming rings, retail businesses suspected as money laundering enterprises and public corruption. The Director General of the Prime Minister’s Office recently formed a committee to explore the possibility of reducing the overall supply of Israeli currency in circulation as part of an effort to combat both counterfeiting and money laundering activity.
  • KYC Covered Entities: Banking corporations, credit card companies, trust companies, stock exchange members, portfolio managers, the Postal Bank, money service businesses (MSBs), dealers in precious stones, lawyers and accountants, and trading floors (foreign exchange dealers)
  • STR Covered Entities: Banking corporations, credit card companies, trust companies, members of the stock exchange, portfolio managers, insurers and insurance agents, provident funds and the companies who manage them, providers of currency services, MSBs, the Postal Bank, dealers in precious stones, and trading floors
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 121 (Jan. 1, 2015 – Oct. 25, 2015); Convictions: 27 (Jan. 1, 2015 – Oct. 25, 2015)
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 17 High : 3
Largely Compliant : 17 Substantial : 5
Partially Compliant : 5 Moderate : 3
Non-Compliant : 0 Low : 0

BASEL i

Rank : 14/110
Score : 3.83/10

TRANSPARENCY INTERNATIONAL i

Rank : 35/179
Score : 60/100

Tax Justice Network i

Rank : 38/133
Score : 59/100