Regulatory Alerts2021-10-24
Management of Anti-Money Laundering and Countering Financing of Terrorism Risks (Proper Conduct of Banking Business Directive No. 411)
The Banking Supervision Department of the Bank of Israel has amended Proper Conduct of Banking Business Directive No. 411 to align Israel’s anti-money laundering and countering the financing of terrorism (AML/CFT) framework with Financial Action Task Force standards and the Payment Services Law. The revision introduces updated definitions for acquirers and aggregators, mandates enhanced customer identification and record-keeping for cross-border electronic transfers, and establishes a regulated arrangement permitting alternative, risk-based identification methods for low-value payment services under strict transaction and balance limits. These amendments also refine reasonable refusal protocols, adjust risk management requirements for high-risk industries, and grant targeted exemptions for managed accounts and credit service providers while maintaining comprehensive monitoring obligations for banking corporations.