Regulatory Alerts2017-03-06
Added
Management of Anti-money Laundering and Countering Financing of Terrorism Risks
The Bank of Israel amends Proper Conduct of Banking Business Directive no. 411 to align with FATF recommendations and Basel Committee guidelines, requiring banking corporations and credit card companies to implement a risk-based approach for identifying and mitigating money laundering and terrorism financing risks. The updated directive expands definitions of politically exposed persons, details risk assessment factors, mandates structured computerized questionnaires for high-risk customers, and establishes group risk management requirements for international subsidiaries. Changes take effect on January 1, 2018, with a transition deadline of December 31, 2017, for converting numbered accounts to regular accounts.