Israel's chief financial regulator ordered the country's third largest bank to pay nearly $1 million Monday over the institution's poor anti-money laundering controls.
Israeli anti-money laundering regulations fail to address gaps in identifying beneficial owners and threats to non-bank financial institutions, a global watchdog group said Wednesday.
Israeli lawyer Itsana Nitsana Darshan-Leitner, who represents victims of terrorism in lawsuits against banks, spoke recently with Fortent Inform reporter Brian Orsak about the suits and what banks should be doing to better monitor for terrorists attempting to exploit the financial system.
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.
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.