Israel Israel

New Documents

Israel Imposes Sanctions on Hezbollah-Linked Digital Currency Wallets

Israeli Defense Minister Yoav Gallant signed an order to impose sanctions on digital currency wallets believed to be linked to Hezbollah.

February 28, 2024

Israel NBCTF Publishes List of Terrorist-Run Crowdfunding Campaigns

On Oct. 22, 2023, the Israeli National Bureau for Counter Terror Financing published a list of online crowdfunding campaigns run by Hamas and other terrorist-designated entities.

October 30, 2023

Israel Designates Green Without Borders as Terrorist Organization

August 23, 2023

Israeli Minister Highlights Operation Targeting Digital Funds to Hezbollah, Iranian Quds Force

July 11, 2023

Israel Defense Minister Thwarts Digital Currency Terror Financing Operation

July 3, 2023

News

Midweek Roundup: UK Bitcoin Launderer Convicted, New York AML Regulator Plans AI Controls, and More

Records link U.K. Conservative party donor to frozen assets, suspicious transactions trigger warning in Europe, and more, in the midweek roundup.

March 20, 2024

Midweek Roundup: US Judge Declares CTA Unconstitutional, UK SARs to Top 1 Million, and More

France ousts FIU chief, Britain’s beneficial ownership registry gains new powers, and more, in the midweek roundup.

March 6, 2024

Midweek Roundup: FinCEN Pitches Real Estate Rule, Treasury Updates Money Laundering Assessment, and More

February 7, 2024

Weekly Roundup: Fintechs Target Hamas, Blacklisted Oligarch’s Children Investigated, and More

January 5, 2024

Midweek Roundup: OFAC Blacklists Hamas Financiers, Child Labor Surge Challenges US Banks, and More

October 18, 2023

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

Israeli Ministry of Finance Issues AML/CFT Regulations for Stock Exchange Members

August 18, 2010

Israeli Regulator Imposes AML/CTF Obligations on Portfolio Managers

August 18, 2010

Israeli Justice Ministry Establishes Terrorist List

January 30, 2008

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

January 27, 2008

Bank of Israel Amends Identification Requirements for Banking Corporations

November 8, 2006

Israel Issues Law Prohibiting Terrorist Financing

December 29, 2004

Israel Enacts Law to Combat Criminal Organizations

June 9, 2003

Israel Imposes AML Obligations on Currency Service Providers

May 1, 2002

Israel Enacts Law to Prevent Money Laundering, Establish FIU

August 8, 2000

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 : 16 High : 3
Largely Compliant : 19 Substantial : 5
Partially Compliant : 4 Moderate : 3
Non-Compliant : 0 Low : 0
Not-Applicable : 1

Israel's technical compliance was re-rated in a May 24, 2022 follow-up report.

BASEL i

Rank : 14/110
Score : 3.83/10

TRANSPARENCY INTERNATIONAL i

Rank : 36/180
Score : 59/100

Tax Justice Network i

Rank : 38/133
Score : 59/100