Financial Sanctions
Financial sanctions on consumer issues
The Supervisor of Banks is authorized to impose a financial sanction on supervised entities, in respect of a breach of directives established by law. The Banking Supervision Department views financial sanctions as an important enforcement tool that serves as a deterrent and a means of enhancing compliance with consumer directives throughout the banking system.
Following is a compilation of press releases published on financial sanctions regarding consumer issues, which were imposed on the banking corporations.
- The Banking Supervision Department has imposed financial sanctions on Israel Discount Bank, Bank Hapoalim, and Mizrahi-Tefahot Bank for improper conduct in the process of collecting debts from customers
- The Banking Supervision department imposes a financial sanction on Cartisey Ashrai LeIsrael (CAL) due to debiting a cancelled card for a transaction
- The Banking Supervision Department imposes a financial sanction on Max credit card company for honoring a charge on a cancelled credit card
- Decision by the Banking Supervision Department to impose a financial sanction on Bank Leumi Ltd. due to collection of fees in contrast to the Banking Order’s stipulations
- The Banking Supervision Department imposes a financial sanction on Isracard due to difficulties in receiving a human response at the call center when requesting to end a contract
- The Banking Supervision Department demands that Bank Hapoalim compensate customers who were affected by a defect found in the bank's automatic cash withdrawal machines, and imposed a monetary sanction on the bank
- The Banking Supervision Department imposes a financial sanction on Bank Hapoalim for not rectifying a deficiency in accordance with the Banking Supervision Department’s directives regarding sending checks via Israel Post
- Financial sanction on Isracard due to credit marketing advertisements
- The Banking Supervision Department imposes financial sanctions on Discount Bank and Leumi Card due to credit marketing advertisements that do not comply with the requirements of the Law
Rectifying system-wide deficiencies and refunding groups of customers
The Banking Supervision Department locates system-wide deficiencies in the banking system via information received from customer complaints and from proactive examinations carried out on a regular basis. In cases where a system-wide deficiency is found, the Banking Supervision Department works to issue directives to rectify the deficiency, and requires the banking corporation to refund a relevant group of customers.
Following is a compilation of press releases published on the issue of rectifying system-wide deficiencies and refunding groups of customers.
Financial sanctions regarding anti-money laundering and combating the financing of terrorism (AML/CFT) issues
The Sanctions Committee for Banking Corporations was established by virtue of the Prohibition on Money Laundering Law, 5760-2000. As part of its enforcement measures regarding the prohibition of money laundering, it is authorized to impose financial sanctions on banking corporations (up to a maximum of NIS 2.26 million per violation), for breaches of the Prohibition on Money Laundering Law, orders, and regulations that were issued by its power.
Following is a compilation of press releases published on the issue of financial sanctions regarding AML/CFT that were imposed on the banking corporations.
- The Banking Corporations Sanctions Committee decides to impose a sanction of NIS 1.88 million on Bank Leumi LeIsrael Ltd. due to a contravention of directives based on the Prohibition of Money Laundering Law
- Sanctions Committee decision on infringements by Bank Leumi of the Prohibition on Money Laundering Law
- The Banking Corporations Sanctions Committee decision regarding infringements by First International Bank of Israel Ltd. of directives under the Prohibition on Money Laundering Law
- The Banking Corporations Sanctions Committee decision regarding infringements by the Bank of Jerusalem of directives under the Prohibition on Money Laundering Law