Israel: the impact of the anti‐money laundering legislation on the banking system

Abstract

Describes the background to the Prohibition on Money Laundering Law, 5760‐2000, which criminalises money laundering and reflects the fact that Israel had become a haven for money launderers in the preceding decade. Lists offences under this law, obligations imposed on providers of financial services, enforcement and sanctions, the Competent Authority and the Database of reports on irregular or suspicious transactions and activities. Moves on to the Prohibition on Money Laundering Order, 5761‐2002, which imposes obligations on banks of identification, reporting and record‐keeping. Outlines finally the guidelines on Prevention of Money Laundering, Identification of Customers and Record‐Keeping.