Financial Crime World

Israel’s AML Regulations Receive High Marks from FATF

Israel has continued to demonstrate its commitment to anti-money laundering (AML) regulations, earning high marks from the Financial Action Task Force (FATF). The country’s Follow-Up Report for 2022 highlights Israel’s progress in implementing AML/CFT (Combating the Financing of Terrorism) regulations.

Risk Assessment and Risk-Based Approach

  • Israel received a “LC” rating for its efforts to assess risk and apply a risk-based approach to its AML/CFT regime.
  • The report praised Israel’s ability to identify, assess, and mitigate risks related to money laundering and terrorist financing.

National Cooperation and Coordination

  • Israel scored high marks in this category, receiving a “C” rating for being compliant with regards to national cooperation and coordination among law enforcement agencies.
  • The report noted significant progress in strengthening national cooperation and coordination among Israeli authorities.

Money Laundering Offence

  • Israel was found to be largely compliant with regards to the definition and criminalization of money laundering, earning an “LC” rating.
  • The country has made efforts to ensure that its laws and regulations effectively criminalize money laundering and related offenses.

Confiscation and Provisional Measures

  • The report praised Israel’s efforts to confiscate proceeds of crime and freeze assets related to money laundering and terrorist financing, earning an “LC” rating in this category.
  • Israel has taken steps to implement effective measures to recover the proceeds of crime and prevent the misuse of its financial system.

Terrorist Financing Offence

  • Israel received a “C” rating for being compliant with regards to the definition and criminalization of terrorist financing.
  • The country has made efforts to ensure that its laws and regulations effectively criminalize terrorist financing and related offenses.

Targeted Financial Sanctions

  • Israel was found to be largely compliant with targeted financial sanctions related to terrorism and terrorist financing, earning an “LC” rating.
  • The country has implemented effective measures to prevent the misuse of its financial system for terrorist financing purposes.

Other Areas of Progress

  • Israel’s regulation and supervision of financial institutions
  • Customer due diligence
  • Reporting of suspicious transactions

Overall, the FATF has expressed satisfaction with Israel’s progress in implementing AML regulations, citing significant improvements in several key areas.