Israel
Overview
Israel’s AML regime is anchored in the Prohibition on Money Laundering Law 2000 and sector-specific prohibition orders. IMPA began operating in 2002 as the national FIU, with preventive requirements imposed across financial and designated sectors.
CDD and sector orders require identification of controlling and beneficial interests. FATF follow-up has evaluated legal-person transparency and the effectiveness of ownership-information mechanisms.
Covered institutions submit unusual-activity and prescribed threshold reports to IMPA. For banking corporations, the 30 April 2026 amendment to Proper Conduct of Banking Business Directive 411 also broadens immediate reporting to Banking Supervision of qualifying investigations concerning suspected money laundering or terrorist-financing offences, including specified officers and employees.
Compliance Calendar3
Requirement
Banking
Report qualifying ML/TF investigations to Bank of Israel Banking Supervision
Authority / Report toBank of Israel — Banking Supervision Department
Deadline / triggerImmediately, under the Directive 411 supervisory-reporting requirement.
Requirement
- Sector scope
- Banking
- Subject scope
- Banking corporations subject to Proper Conduct of Banking Business Directive 411.
- Trigger
- The banking corporation becomes aware of a qualifying investigation concerning suspicion of money laundering or terrorist-financing offences involving the banking corporation or a controlled entity, including the officers and employees covered by the amended Directive 411 reporting scope.
- Filing channel
- Supervisory reporting channel required by the Bank of Israel / Banking Supervision Department.
Impact
- Consequences of non-compliance
- Failure to meet supervisory reporting requirements may expose a banking corporation to supervisory action under the applicable banking and AML/CFT framework.
- Enforcement authority
- Bank of Israel — Banking Supervision Department
- Operational impact
- Banks should route qualifying ML/TF investigation notices to Banking Supervision immediately and ensure escalation procedures cover the expanded officer/employee scope.
Requirement
Unusual activity reporting to IMPA
Authority / Report toIsrael Money Laundering and Terror Financing Prohibition Authority (IMPA)
Deadline / triggerFile under the applicable sector order. Deadlines differ by reporting regime; no single universal day-count is asserted.
Requirement
- Subject scope
- Reporting entities covered by the Prohibition on Money Laundering Law and applicable sector reporting orders.
- Trigger
- Activity meeting the unusual-activity reporting standard in the applicable order.
- Filing channel
- Applicable IMPA / regulator reporting form or electronic process.
Impact
- Consequences of non-compliance
- Late/missing reports can attract regulatory or statutory consequences under the applicable order/law.
- Enforcement authority
- IMPA / relevant sector regulator
- Operational impact
- Map each regulated activity to its exact reporting order instead of using a generic Israeli STR rule.
Requirement
Risk-based AML/CFT controls, CDD and recordkeeping
Authority / Report toIMPA / relevant sector regulator
Deadline / triggerMaintain CDD, monitoring, governance and records for the period required by the applicable law / sector rule; No single universal retention period is shown where rules differ by record type or sector.
Requirement
- Subject scope
- Financial institutions and designated non-financial businesses/professions within the applicable national AML/CFT perimeter.
- Trigger
- Continuous while carrying on covered business; enhanced measures apply when higher-risk customers, products, transactions or relationships are identified.
- Filing channel
- Internal AML programme, customer/beneficial-owner records, transaction monitoring, escalation and retained evidence; supervisory submissions apply when separately required.
Impact
- Consequences of non-compliance
- Control or recordkeeping failures can attract supervisory, administrative or criminal consequences under the applicable AML/CFT framework.
- Enforcement authority
- IMPA / relevant sector regulator
- Operational impact
- Keep the firm’s control library mapped to the exact sector rule and keep evidence of CDD, monitoring, escalation and record retention.
Authorities & FIU5
FATF Assessment
Measures how fully the jurisdiction has implemented FATF’s technical requirements. It does not measure practical effectiveness.
Measures whether the AML/CFT system achieves its intended results in practice. Follow-up reports do not normally replace these ratings.
Explore 40 FATF RecommendationsSee every Technical Compliance rating and what it means.+
Explore 11 Immediate OutcomesSee how FATF rates whether the AML/CFT system works in practice.+
Regulatory Timeline40
On 7 October 2026 the Bank of Israel published Circular 2862 under Proper Conduct of Banking Business Directive 411, titled Management of Anti-Money Laundering and Countering Financing of Terrorism Risks. The official circular register confirms the publication date, circular number and linkage to Directive 411.
Israel’s IMPA reported that on 9 June 2026 a temporary order amending the first schedule to the Prohibition on Money Laundering Law was published in the official records. The Knesset Constitution Committee had approved the order on 1 June, providing that offences involving illegal trade in protected natural assets and protected wildlife are treated as predicate offences under the AML law for a two-year temporary period.
The Bank of Israel published a final amendment to Proper Conduct of Banking Business Directive 411 on 30 April 2026. The changes update banking-sector AML/CFT risk management, including electronic-transfer identification, supervisory reporting of ML/TF investigations, payment-service account controls and alternative customer-identification arrangements.
FATF revised Recommendation 16 to standardise payment information and strengthen fraud/error controls in cross-border payments.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗FATF amended Recommendation 1 and related interpretive material to strengthen proportionality and simplified measures under the risk-based approach.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗FATF revised Recommendations 4, 30, 31 and 38 and related interpretive material to make asset recovery a stronger operational priority, expand tools to trace and confiscate criminal property and improve domestic and international cooperation.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗At its February 2023 Plenary FATF revised Recommendation 25 and its Interpretive Note to strengthen transparency and beneficial-ownership requirements for trusts and similar legal arrangements, complementing the 2022 strengthening of Recommendation 24 for legal persons.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗FATF strengthened Recommendation 24 on beneficial ownership transparency for legal persons.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗An amended financial-service-provider AML order brought virtual-asset service activity within the preventive regime, including CDD, reporting and risk-based obligations.
FATF amended Recommendations 1 and 2 and their Interpretive Notes so countries and covered private-sector entities must identify, assess and mitigate risks of breaches, non-implementation or evasion of proliferation-related targeted financial sanctions.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗The Basel Committee revised its ML/TF risk-management guidelines to add principles for information exchange and cooperation between prudential and AML/CFT supervisors in authorisation, ongoing supervision and enforcement.
A Basel supervisory publication does not become domestic law merely because it is GLOBAL. National adoption, supervisory use or incorporation must be evidenced by a LOCAL milestone or source.
Basel Committee on Banking Supervision ↗FATF adopted detailed implementation requirements for virtual assets and VASPs in June 2019, including the application of wire-transfer information requirements commonly described as the Travel Rule. This operationalised the virtual-asset perimeter introduced through the 2018 Recommendation 15 revision.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗FATF records Israel as a member since 2018.
In October 2018 FATF revised Recommendation 15 and added the definitions of virtual asset and virtual asset service provider, formally bringing virtual-asset activity into the global AML/CFT standards architecture. Detailed implementation requirements followed in 2019.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗The Basel Committee issued Sound management of risks related to money laundering and financing of terrorism, superseding its 2001 CDD and 2004 consolidated KYC papers and integrating ML/TF risk management with prudential supervisory expectations.
A Basel supervisory publication does not become domestic law merely because it is GLOBAL. National adoption, supervisory use or incorporation must be evidenced by a LOCAL milestone or source.
Basel Committee on Banking Supervision ↗FATF adopted a consolidated revised set of 40 Recommendations integrating AML, CFT and proliferation-financing safeguards.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗Resolution 1737 imposed binding measures concerning Iran’s proliferation-sensitive nuclear activities, including an asset freeze on designated individuals and entities. Together with the DPRK regime, it forms a foundational UN counter-proliferation targeted-financial-sanctions architecture.
UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.
UN Charter · Article 25 ↗Following the DPRK nuclear test, Resolution 1718 imposed binding sanctions including an asset freeze on designated persons and entities connected to the nuclear programme. It became a central UN targeted-financial-sanctions pillar for counter-proliferation financing.
UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.
UN Charter · Article 25 ↗MONEYVAL states that Israel has been a member since 2006; the 2008 Annual Report records that the Committee of Ministers granted Israel active-observer status in January 2006 enabling participation in the evaluation process.
FATF added a ninth Special Recommendation addressing cash couriers and cross-border movement of currency.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗Resolution 1540 requires all States to adopt and enforce laws and domestic controls to prevent non-State actors from acquiring or using weapons of mass destruction and related materials. It forms a binding global legal pillar of the proliferation-financing control environment later reflected in FATF CPF standards.
UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.
UN Charter · Article 25 ↗The UN General Assembly adopted the United Nations Convention against Corruption on 31 October 2003. UNCAC addresses prevention of money laundering, laundering of corruption proceeds, confiscation and a dedicated asset-recovery framework; the Convention entered into force globally on 14 December 2005.
Current UN depositary relationship to 2003 UN Convention against Corruption. This is not a claim that the jurisdiction was already a Party on the GLOBAL event date; the national accession/ratification date is a separate LOCAL/STATUS fact.
UN Treaty Collection ↗FATF comprehensively revised its AML/CFT Recommendations, strengthening preventive measures and extending coverage.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗FATF de-listed Israel from the NCCT list on 2002-06-21.
The Egmont Group's official Member FIU Information register records Israel's FIU admission date as 2002-06-05.
Israel established an operational FIU to receive, analyse and disseminate financial intelligence under the AML regime.
The Basel Committee issued Customer due diligence for banks, setting minimum supervisory expectations for customer acceptance, identification, ongoing monitoring and risk management. It became an influential global banking KYC/CDD benchmark and was later reflected in FATF standards.
A Basel supervisory publication does not become domestic law merely because it is GLOBAL. National adoption, supervisory use or incorporation must be evidenced by a LOCAL milestone or source.
Basel Committee on Banking Supervision ↗FATF expanded its standards to terrorist financing through eight Special Recommendations.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗Resolution 1373 requires all States to prevent and suppress terrorist financing, criminalise the provision or collection of funds for terrorist acts, freeze terrorist assets without delay and prohibit making funds or financial services available to terrorists and related entities.
UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.
UN Charter · Article 25 ↗The Palermo Convention was adopted on 15 November 2000 and broadened the international money-laundering framework beyond drug proceeds through criminalisation and preventive measures tied to transnational organised crime. It entered into force globally on 29 September 2003.
Current UN depositary relationship to 2000 Palermo Convention. This is not a claim that the jurisdiction was already a Party on the GLOBAL event date; the national accession/ratification date is a separate LOCAL/STATUS fact.
UN Treaty Collection ↗The 2000 law establishes Israel’s principal AML statutory framework, including preventive obligations, reporting and confiscation mechanisms.
FATF identified Israel as a Non-Cooperative Country or Territory (NCCT) on 2000-06-22.
The UN General Assembly adopted the International Convention for the Suppression of the Financing of Terrorism on 9 December 1999, creating the treaty framework for criminalising terrorist financing and international cooperation. It entered into force globally on 10 April 2002.
Current UN depositary relationship to 1999 Terrorist Financing Convention. This is not a claim that the jurisdiction was already a Party on the GLOBAL event date; the national accession/ratification date is a separate LOCAL/STATUS fact.
UN Treaty Collection ↗Resolution 1267 imposed an assets freeze and other targeted sanctions in the Taliban context and created the Security Council committee that became the foundation of the UN 1267 sanctions architecture. It is a key global precursor to modern terrorist-financing targeted financial sanctions.
UN Members agree to accept and carry out Security Council decisions. This current Charter relationship is not proof of the jurisdiction’s domestic implementation, nor a claim about its membership status on the historical event date.
UN Charter · Article 25 ↗FATF revised the Forty Recommendations to reflect evolving money-laundering methods and countermeasures.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗Representatives of 13 financial intelligence units met in Brussels on 9 June 1995 and founded what became the Egmont Group. The milestone created the operational global network for FIU-to-FIU cooperation and exchange of financial intelligence.
Current profile relationship to the Egmont network. This does not imply membership in 1995; admission history is a separate LOCAL/STATUS fact.
Egmont Group · Member FIUs ↗FATF issued its original Forty Recommendations, establishing the first global AML standard framework.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗The G7 established FATF in 1989 to examine and develop measures to combat money laundering. FATF became the central global standard-setting body whose recommendations are implemented through national and regional AML/CFT frameworks.
Current relationship. Direct FATF membership and any listed regional assessment network participation are current profile relationships only. The GLOBAL milestone does not prove membership or domestic implementation on the event date; those remain LOCAL/STATUS evidence.
FATF Global Network ↗The Vienna Convention was adopted on 20 December 1988 and created the first treaty-level international obligation to criminalise laundering conduct linked to drug-trafficking proceeds, alongside confiscation and international-cooperation measures. It entered into force globally on 11 November 1990.
Current UN depositary relationship to 1988 Vienna Convention. This is not a claim that the jurisdiction was already a Party on the GLOBAL event date; the national accession/ratification date is a separate LOCAL/STATUS fact.
UN Treaty Collection ↗The Basel Committee published a Statement of Principles for banks aimed at reducing the risk that banking institutions would be used by criminals or as channels for money laundering. This helped establish the preventive and supervisory side of AML alongside the emerging criminal-law framework.
A Basel supervisory publication does not become domestic law merely because it is GLOBAL. National adoption, supervisory use or incorporation must be evidenced by a LOCAL milestone or source.
Basel Committee on Banking Supervision ↗