Correction to the Banking Corporations Sanctions Committee decision regarding infringements by Bank Hapoalim Ltd of regulations under the Prohibition on Money Laundering Law

01.02.2011

Correction to the Banking Corporations Sanctions Committee decision regarding infringements by Bank Hapoalim Ltd of regulations under the Prohibition on Money Laundering Law

On January 31, 2010 the Banking Corporations Sanctions Committee regarding the prohibition on money laundering and the financing of terrorism decided to correct its decision of December 30 2010, and to reduce the financial sanction of NIS 6 million on Bank Hapoalim Ltd (hereafter the bank) to NIS 5,375,000.

This corrects an error in the decision relating to infringements of the banking directives issued by virtue of the power vested by the Prohibition on Money Laundering Law, 5760-2000, by the Private International Banking Center of the bank (henceforth the Yarkon branch) in 2004.

In its original decision, the Committee decided to act leniently and not to relate to events for which employees of the bank were prosecuted and acquitted. However, due to an error, a sanction was imposed for an event for which employees were prosecuted and acquitted.

In light of the correction, the financial sanction imposed for activity by the Private International Banking Center in the Yarkon branch of the bank is NIS 5, 375,000.