should obtain name, address, identification number, date of birth and gender. Passports and identity cards are suitable for
should obtain name, address, identification number, date of incorporation. For controlling shareholders the same information
as for individuals should be obtained. Memorandum and Articles of Association and Certificates of Incorporation are suitable for verification
Banks should require the applicants to declare whether they are acting for themselves or on behalf of another. If an applicant declares that he/she is acting on behalf of another, the declaration should include the particulars as set out in the guidance notes in respect of each of the beneficiaries.
The law provides information about customers and distinguishes between Israeli citizens and non Israeli citizens. For non citizens there are legal demands for ensuring all the activities are globally accepted. When opening a correspondent account for a corporation incorporated in a country that is not a member of the OECD, the banking corporation shall also obtain documents detailing the local guidance, and shall retain them for at least seven years after the account is closed. The decision for undertaking enhanced due diligence should be taken and documented in accordance with the risk based approach.
Foreign PEPs are automatically considered high risk clients and are subject to additional procedures.
The banking corporation should obtain the following: a) name; b) name of the country and supervisory authority; c) general information (this is the address and telephone number of the corporation and names of persons to contact, according to the Banking Order); d) name and address of all shareholders above 20%; and e) last annual report and ‘reaust letter’ (letter requesting the opening of an account to be retained for at least 7 years after the account closed). When the correspondent is not from the OECD, the bank should obtain a licence from the supervisory authority, the incorporation documents and letters of reference from banks in OECD member countries that manage accounts of the corporation wishing to open an account. In addition Israeli banks should examine the efforts taken by the correspondent bank to defend against money laundering and terrorist financing.
Yes – however, where a correspondent bank is related to a supervised banking corporation, engagements are allowed.
Where a customer approaches a firm by post, telephone or over the internet, it should carry out non face-to-face verification, either
electronically or by reference to documents.
IMPA - the Israeli Financial Intelligence Unit (FIU)
Yes, financial institutions are obliged to report cases such as unusual transactions, cash transactions above ILS50,000, international wire transfers to high risk countries, withdrawal of money which is not in line with usual pattern of business etc. There is a list published by the regulators which provides examples of what suspicious behaviour might look like
Yes, the regulators can fine the controlled institutions. The maximum fine that controlled/supervised institutions can face is ILS2,260,000 for each violation.
No, although several institutions use automated suspicious transaction monitoring technology.
The regulators only require that monitored institutions report the transaction to the FIU – there is no requirement to wait for the authority to proceed.
electronically or by reference to documents.
The Teudat Zehut is first issued at age 16 and is compulsory by 18.
Israel's Electronic Signature Law does not contain any restriction on the type of agreement it applies to when using a digital signature.
Chapter 2 requires the use of a certified electronic signature (sometimes called advanced electronic signatures) to satisfy laws requiring a signature on a document.
Summary of law
Israel’s Electronic Signature Law is modeled on the EU Directive on Electronic Signatures, but it does not permit the use of electronic signatures when a signature is required on a document. Instead, Israel requires the use of a digital signature. However, some documents may not require a signature to be enforceable. In these situations, an electronic signature solutio n may be appropriate to track and manage the final, approved version of a document.
Document copies should be certified by an appropriate person, for example a notary, lawyer or accountant. In addition, verification in
accordance with the Population Registry should be performed.