Financial Crime World

Israel’s Anti-Money Laundering Regulations: A Complimentary Report

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A recent report has highlighted Israel’s progress in implementing anti-money laundering (AML) regulations, as recommended by the Financial Action Task Force (FATF). According to the report, Israel has made significant strides in addressing money laundering and terrorist financing concerns.

Compliance with FATF Recommendations

The report assesses Israel’s compliance with FATF’s 40 Recommendations, which provide a framework for countries to prevent and combat money laundering and terrorist financing. The country received high marks for its implementation of several key recommendations, including:

  • Risk assessment and applying a risk-based approach
  • National cooperation and coordination
  • Customer due diligence

Areas of Compliance

Israel was found to be largely compliant in areas such as:

  • Assessing risk and applying a risk-based approach
  • Confiscation and provisional measures
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Non-profit organizations
  • Financial institution secrecy laws
  • Record keeping
  • Politically Exposed Persons (PEPs)
  • Correspondent banking
  • Money or value transfer services
  • New technologies
  • Wire transfers
  • Transparency and beneficial ownership of legal persons

Areas for Improvement

However, Israel was found to be partially compliant in areas such as:

  • National cooperation and coordination with foreign countries
  • Regulation and supervision of financial institutions
  • Designated non-financial businesses and professions (DNFBPs)
  • Financial intelligence units

Israel received lower marks for its implementation of recommendations related to:

  • Internal controls
  • Foreign branches and subsidiaries
  • Higher-risk countries
  • Reporting of suspicious transactions
  • Tipping-off and confidentiality
  • Cash couriers

Conclusion

Overall, the report concludes that Israel has made significant progress in implementing AML regulations, but there is still room for improvement in certain areas. The country’s financial regulators and law enforcement agencies will need to continue working together to ensure that these regulations are effectively implemented and enforced.

Accessing the Full Report

The full report can be accessed on the FATF website.