The directive requires the Board of Directors of a banking corporation or credit card company to establish the policy on the risks entailed in dealing with customers designated on international lists as aiding Iran’s nuclear program.
(Communicated by the Office of the Spokesperson and Economic Information, Bank of Israel)
Following on a joint notice of the Bank of Israel, Ministry of Finance, and Israel Securities Authority from July 7, 2011, regarding the intensification of the struggle against entities aiding Iran’s nuclear program and programs related to it, Supervisor of Banks David Zaken today issued a final directive to banking corporations and credit card companies.
The directive establishes guidelines for the corporations supervised by the Banking Supervision Department. The guidelines are based on the draft directives formulated together with the other regulators, and are integrated within the framework of Proper Conduct of Banking Business Regulation 411, "Prevention of Money Laundering and Terrorism Financing, and Customer Identification".
The directive requires the Board of Directors of a banking corporation or credit card company to establish the policy on the risks entailed in dealing with, or carrying out transactions on behalf of, customers designated on international lists as aiding Iran’s nuclear program and programs related to it. In that regard, the directive refers to an amendment and to lists compiled by international bodies, and published by the Israel Money Laundering and Terror Financing Prohibition Authority, which contain the names of entities that have been designated as maintaining prohibited connections with Iran.
In addition, the banking corporations and credit card companies are requested to submit to the Supervisor of Banks by March 31, 2012, an initial survey that examines their exposure to the entities designated on the published lists.