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Banking Compliance Checklist in Israel: A Guide for Financial Institutions

Regulatory Overview

Amazon Web Services (AWS) is committed to providing financial institutions in Israel with a robust compliance framework and advanced tools and security measures to help them evaluate, meet, and demonstrate compliance with applicable legal and regulatory requirements.

Who are the Financial Regulators in Israel?

The financial services industry in Israel is not governed by a single regulator. Different regulatory frameworks apply depending on the financial activity and business services. The Bank of Israel (formerly known as the Bank of Israel), the Israeli Securities Authority, and the Insurance Division of the Ministry of Finance are among the key regulators.

Compliance Considerations for Financial Institutions

• Develop, implement, and maintain an operational risk management framework that is fully integrated into overall management processes in line with the Bank of Israel directives for banking corporations.
• Perform a risk assessment before engaging a provider and periodically thereafter.
• Review the AWS Shared Responsibility Model and map AWS responsibilities and customer responsibilities according to each AWS service used.
• Customers can use AWS Artifact to access AWS’ audit reports and conduct their assessment of control responsibilities.

Data Protection, Data Privacy, and Data Residency Considerations

• Financial institutions in Israel using AWS should consider applicable data protection and data privacy requirements, including the Israeli Privacy Protection Law, 5741-1981, and the Privacy Authority’s Guidelines No. 2/2011.
• The Data Transfer Regulations allow for data to be transferred and stored in regions where there are equal or more stringent data protection regulations to Israeli law or other regions upon fulfilling one of the conditions laid down in the regulations.

AWS Resources for Financial Institutions

• AWS Operational Resilience in Financial Services Guide
• AWS Policy Perspective: Data Residency
• AWS Logical Separation Handbook
• Financial Services Lens - AWS Well Architected Framework

Contact Us

Customers who have questions about the regulatory guidelines and how these may apply to their use of AWS services, or about how AWS services can enable them to meet their security and compliance needs can contact their account representative or contact us.

Disclaimer

This document is provided for informational purposes only. This document does not create any warranties, representations, contractual commitments, conditions, or assurances from AWS, its affiliates, suppliers, or licensors. The responsibilities and liabilities of AWS to its customers are controlled by AWS agreements, and this document is not part of, nor does it modify, any agreement between AWS and its customers.

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AWS has announced the launch of the Israel (Tel Aviv) Region - in the first half of 2023 with three Availability Zones. This new Region will give AWS customers in Israel the ability to run workloads and store data that must meet low latency or data processing or residency requirements.