Rony Hizkiyahu
צילום: ראובן קפוצ'ינסקי
Bank of Israel fines Leumi
Banking Sanctions Commission fines Leumi nearly $100,000 for violations of money laundering regulations. Breaches found minor, bank may appeal decision
Bank Leumi was fined $98,000 by the Bank of Israel's Banking Sanctions Commission for violating sections of the money laundering regulations, Yedioth Ahronot revealed Thursday.
The violations discovered were related to the verification process needed in order to open an account, to the lack of protocol regarding beneficiary statements and to the maintaining of identification documents.
Further violations of sections of money laundering regulations were found as well.
This is the first time Leumi is found liable for violations of this kind. The violation themselves were found to be minor and small in scope, and once detected Leumi rectified them as soon as it could.
These facts were taken under advisement when the commission decided on the bank's fine. Leumi can appeal the decision within 30 days.
A statement by the Bank of Israel said all banks must improve their risk management protocol in order to comply with the anti-money laundering regulations.
The Banking Sanctions Commission can fine financial institutions by up to NIS 2 million (about $462,000) for every violation it finds.
The commission is headed by Rony Hizkiyahu and its co-chair is the director of the Israel Money Laundering Prohibition Authority, attorney Yehuda Shaffer.
