Bank of Israel fines card companies for money laundering offences

The Bank of Israel has fined Israel Credit Cards-Cal (ICC-Cal) ILS6m ($1.7m) and Leumi Card ILS1.2m for violating the Prohibition of Money Laundering Order.

The Bank of Israel has fined Israel Credit Cards-Cal (ICC-Cal) ILS6m ($1.7m) and Leumi Card ILS1.2m for violating the Prohibition of Money Laundering Order.

The two credit card companies have the right to appeal against the fines within 30 days. The Bank of Israel said it took into account both companies’ actions to correct the flaws, and the fact ICC-Cal’s CEO was replaced at the time of the offences.

The sanctions are based on a report by the Banking Supervision Department which uncovered a number of breaches of the order.

Most of ICC-Cal’s offences occurred during 2007-2008 and included failure to demand ID documents from customers, failure to verify ID, failure to report a large volume of unusual transactions, failure to report the type and size of some transactions, as well as errors and missing information in reports to the Money Laundering Prohibition Authority.

Leumi Card’s offences occurred during 2008-2009 and involved insufficient verification of ID, declarations about beneficiaries which were inconsistent with the wording in Appendix A of the Prohibition of Money Laundering Order, failure to report unusually large transactions, as well as errors and missing information in reports to the Money Laundering Prohibition Authority.

 

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