General Information


All you need to know about money laundering prohibition

Will the bank inform a client when reporting client actions to the Authority?


No, the bank will not inform the client. The Law prohibits the bank from informing clients regarding reports on any unusual actions concerning the client.
Reporting by transaction value is, as mentioned, automatic - for all transactions valued above a specified threshold.


Is information provided by the bank to "the qualified authority" kept in confidence?

Yes, the information is kept in confidence. According to the Law, information submitted to the Authority is classified and is not accessible by un-authorized persons. The Authority may only transfer information in accordance with statutory provisions and for the investigation of money laundering violations or for matters of national security and for fighting terror organizations.


Is the Law in contradiction with the principle of privacy and banking confidentiality?

Possibly, the Law may be in such contradiction to a certain degree. However, as with other laws, the legislative body is required to balance different values. In this case - the values of personal privacy and banking confidentiality on the one hand and the fight against money laundering and crime on the other hand. The legislative body, being aware of the potential conflict between these values, attempted to maintain a balance between them. Thus, the Law stipulates that information would be provided to a qualified Authority at the Ministry of Justice, which is authorized to transfer such information only to certain law enforcement agencies, in accordance with the provisions of the Law and subject to its conditions.