Monetary sanction imposed on an information source reporting to the Central Credit Register – Bank Leumi LeIsrael Ltd.
The Supervisor of Credit Data Sharing used his authority under the Credit Data Law, 5776–2016 (“the Law”) to impose a monetary sanction against Bank Leumi LeIsrael Ltd.
The monetary sanction was imposed after Bank Leumi did not transmit reports required by the Law to the Central Credit Register in respect of daily warnings and checks that were not honored due to insufficient coverage, in respect of tens of thousands of customers.
The Supervisor of Credit Data Sharing imposed a monetary sanction on Bank Leumi LeIsrael Ltd., totaling NIS 796,419, in accordance with his authority pursuant to the Credit Data Law, 5776–2016. The sanction was imposed due to a breach of Bank Leumi’s obligation to transfer information to the Central Credit Register as required under the Law.
The amount of the sanction was determined following a reduction of 70 percent of the sanction in view of the fact that until this breach, the bank had not breached the provisions of the Credit Data Law or the regulations derived from it in the past three years. The reduction was also made in view of the relatively minor nature of the breach, and other factual considerations that were brought to the Supervisor’s attention. This is in accordance with the Credit Data Rules, 5778–2018.
Supervisor of Credit Data Sharing Eyal Hadad said: “The information reported to the Central Credit Register has an impact on millions of customers, and is relied upon by credit providers when they decide on whether to conduct a credit transaction with a customer. The law attributes great importance to the precision and reliability of the credit data that an information source provides to the Register. The completeness and dependability of the information are immensely important. As such, I decided to impose this sanction on Bank Leumi. I hope that such breaches will not be repeated, and that the continuity, quality, and precision of the reporting will be maintained by all information sources reporting to the Central Credit Register.”