Israel Israel

New Documents

Israeli Defense Minister Yoav Gallant designated two currency exchange offices owned by the Herzallah family and their managers as terrorist organizations, in accordance with the Anti-Terrorism Law.

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


Enforcement Actions

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.

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.

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)


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.


Rank : 14/110
Score : 3.83/10


Rank : 36/180
Score : 59/100

Tax Justice Network i

Rank : 38/133
Score : 59/100