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AML/CTF Legislation in Israel

AML/CFT Legislation in
Israel  ​

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Israel​’s AML/CTF Supervisors

(IMPA) - Israel's Financial Intelligence Unit

IMPA was founded in 2002 as a financial intelligence unit that operates in accordance with the FATF's international rules for combating money laundering and is overseen in Israel by MONEYVAL, the monitoring body of the Council of Europe. IMPA is a self-contained intelligence agency and is merely an administrative body with no investigative powers. As a result, IMPA acts as a buffer between the financial sector and law enforcement authorities conducting investigations. As required by law, IMPA only shares information with law enforcement authorities when it is deemed relevant to suspected money laundering or terror financing activities.

Israel Anti Money Laundering Law, 5760-2000

In the year 2000, the Anti-Money Laundering Act was passed. The Act’s goal is to give authorities more tools in the fight against serious and  organised crime while also adhering to the FATF's international standards. 

The law is divided into four categories:

  1. Prevention: The Israeli financial sector is subject to an anti-money laundering regime imposed by the Law and Orders. The law requires financial institutions to appoint a corporate compliance officer, who is responsible for ensuring that the financial institution's obligations are met. Customers must be identified, ongoing due diligence must be conducted, records must be kept, and currency transactions and unusual activities must be reported to the IMPA.
  2. Punishment: Under the law, money laundering is punishable by a sentence of seven  to ten years in prison. The severity of the penalty reflects the legislator’s moral perspective that money laundering provides criminals with a significant motivation by allowing them to profit from their crimes, and thus it must be condemned and punished harshly.
  3. Recovering Assets: According to the principle that assets derived from crime or used in its commission should be returned to the state, the law allows the State of Israel to confiscate "prohibited property." Confiscation is not a substitute for the serious offender's punishment (imprisonment or fine), but it is imposed in addition to it.
  4. Collaboration on a global scale: The law gives IMPA the authority to collaborate and share intelligence with counterpart FIUs. This type of cooperation aids law enforcement authorities by providing additional information through secure international intelligence gathering tools, particularly in cases of serious transnational crimes and  organised crime networks.

The Suspicious Activity Report Under Israel Anti Money Laundering Law

This is an official filing escalated to the IMPA by the financial institutions and the gate keepers that includes details about a questionable transaction.  It is further required by the Anti Money Laundering Law of Israel,  as it helps in prohibiting the predicate offences of Money Laundering.

How can MemberCheck Help?

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Use our sophisticated scan filters and due diligence workflow to minimise the amount of time you spend sorting through, false matches. Scan results and reporting sections allow you to access customer details, whenever and wherever required, as well as download reports, to customise for further investigation or to provide evidence of your AML program compliance for auditing purposes.

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* This page is intended as general information only and should not be relied on as the sole source of information for your AML obligations and AML program. Please visit your local regulatory authority sites for the latest relevant and full information.

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