Israel Discount Bank said costs related to an anti-money laundering compliance settlement with the U.S. government have escalated to nearly $56 million, or more than twice the size of a regulatory penalty assessed against the institution in 2005. U.S. regulators ordered the bank's New York subsidiary to pay more than $20 million in penalties for AML deficiencies that resulted in the transfer of billions of dollars in illicit funds from Brazil through the bank's New York offices. In addition to the penalties, the bank has spent $29.4 million to shore up AML compliance deficiencies and scrutinize suspect transactions, according to...
Israeli banking authorities imposed a record $2.1 million fine for AML violations on Bank Hapoalim, Ltd., citing the bank's failure to report suspicious activity, collect or maintain beneficial ownership information and freeze accounts with incomplete customer identification data.
Israel's Security Cabinet designated 35 groups linked to al-Qaida and the Taliban as terrorists. They are the first of many new sanctions aimed at global terrorist groups that focus their attacks on other countries. The designations bring Israel more in line with U.S. and European sanctions regimes.
Compliance costs tied to two civil money penalties totaling $20.5 million reached more than $30 million and could go higher if federal regulators determine the institution illegally allowed transactions linked to Iran, according to a third quarter filing by the bank.