| On 12 February 2008 various requirements set by the Supervisor of Banks, Rony Hizkiyahu, relating to the prevention of money laundering and financing of terrorism will come into effect. These requirements are set out in a letter that regularizes the contacts between Israel’s banking system and banks operating in areas under the Palestinian Authority in transactions related to transfers of money and checks. In accordance with the letter: |
| 1) |
A banking corporation shall not accept checks for deposit, in shekel or foreign currency, drawn on banks operating in areas under the Palestinian Authority, which do not have the identification particulars of the account holder imprinted on the front in Latin characters and digits as used in Israel. |
| 2) |
A banking corporation shall not accept checks for collection, in shekel or foreign currency, presented by banks operating in areas under the Palestinian Authority, without receiving details of the account in which the check is deposited and identification particulars of all the account holders in Latin characters and digits as used in Israel. |
| 3) |
A banking corporation shall not accept endorsed checks drawn on banks operating in areas under the Palestinian Authority, and shall not accept endorsed checks for collection presented by banks operating in areas under the Palestinian Authority. |
| 4) |
A banking corporation shall not accept a transfer of money in an amount exceeding NIS 5,000 from banks operating in areas under the Palestinian Authority without receiving details of the account of the other party to the transaction and identification particulars of all the account holders in Latin characters and digits as used in Israel. |
| Banks will also be obliged to check the opposite party in transfers to high-risk territories and countries (including the Palestinian Authority) against the list of declared terrorist organizations and terrorists and to report such transfers to the Israel Money Laundering and Financing of Terrorism Prohibition Authority. |