Management of AML/CFT Risk

Bank of Israel
Banking Supervision Department
October 4, 2020
Circular no. C-06-2629
Attn:
Banking corporations and credit card companies Re: Management of AML/CFT Risk (Proper Conduct of Banking Business Directive no. 411) Introduction On August 15, 2010, the Supervisor of Banks published an arrangement in accordance with
Section 3(c) of the Prohibition on Money Laundering (The Banking Corporations’ Requirements
regarding Identification, Reporting, and Record-Keeping for the Prevention of Money Laundering and the Financing of Terrorism) Order, 5761–2001 (“the Order”), as it was formulated at that time, for opening an account for asylum seekers in Israel and for temporary protection beneficiaries (“the Arrangement”). On March 6, 2011, the Arrangement was updated to include a sample of a visa issued by the offices of the Identification and Registration Unit of the Population and Immigration Authority in Lod. Since the Arrangement was established and updated, issues related to its implementation have come up from time to time. These issues derived from, among other things, changes in the identification processes and the authorizations issued by the Population and Immigration Authority, changes that required the adjustment of the Arrangement to enable asylum seekers and beneficiaries of temporary protection to open and manage accounts in a suitable manner by presenting the authorizations they were issued to them. In view of the above, and after consultation with the Population and Immigration Authority, the Supervisor of Banks found it proper to update the Arrangement on the matter and to add it as
Appendix B.1 to Proper Conduct of Banking Business Directive 411; within the framework of
the Appendix clarifications were added regarding the opening and management of the account. Main points of the update
Appendix B.1 shall be added to Directive 411. In it will be anchored the Arrangement established
by the Supervisor of Banks by power of the Supervisor’s authorization under Section 7a of the Order, regarding the methods of identification, verification of details, authorizations, and alternative documents regarding the opening and managing of accounts for asylum seekers and for temporary protection beneficiaries, as detailed in the Appendix.

Application
The start date of the amendments to Directive 411 shall be the date the Circular is published on the Bank of Israel website. Update of file Update pages for the Proper Conduct of Banking Business Directive file are attached. Following are the provisions of the update:
Remove page Insert page
(03/20) [17] 411-1-29 (10/20) [18] 411-1-32
Respectfully,
Yair Avidan
Supervisor of Banks