Technological and digital developments, the changing activity environment, and changes in consumer preferences and the types of financial services, have created a reality in which money laundering and terrorism financing patterns are increasingly sophisticated. This reality has led the BSD to act and to adjust the regulatory and enforcement framework with regard to the prohibition on money laundering and financing of terrorism to bring it in line with current and emerging risks.
In addition, with the goal of giving the banking system better tools to deal with the risks, the BSD is working alongside and in collaboration with the enforcement and security forces in Israel, through the range of tools available to it, and requires the implementation and integration of strict and careful policy with regard to money laundering and terrorism financing risks, with an emphasis on the systems of management, control, and monitoring, in line with international standards.
Supervisor of Banks Mr. Yair Avidan said, “Managing AML/CFT risks are high supervisory priorities, with a focus on areas assessed as high risk and on occurrences that may cause an increase in potential risks. The policy document delineates the BSD’s targets and the main principles in this area, through implementing a risk-based approach for the need to realize these targets and detailing the legal framework in Israel, the BSD’s authorities, roles and targets, work plan, and supervisory tools.”