The Financial Action Task Force (FATF) is a prestigious international organization of 34 countries, which advances AML and counter terrorism financing standards and policies.

This week, a high-level delegation from the FATF visited Israel, to examine the State of Israel’s joining as a member of the group. The concluding meeting of the visit, with the Governor of the Bank of Israel and the Supervisor of Banks, took place on Tuesday, 21 Cheshvan.

The Governor of the Bank of Israel, Dr. Karnit Flug, emphasized the great importance that the Bank places on the State of Israel’s becoming a member of the organization, and the commitment to advancing the standards regarding combating money laundering and the financing of terrorism so that they are in line with the international standards.

The FATF was founded in 1989 with the goal of promoting standards and policies regarding combating anti-money laundering, financing of terrorism and the proliferation of weapons of mass destruction, and threats to the integrity of the global financial system. Today there are 34 countries that are members in the organization. The organization publishes recommendations recognized as international standard, and confirms their implementation through evaluation processes.

Israel is currently only an observer in Moneyval, which is a FATF-style regional body. Upgrading Israel to full membership in the FATF will allow the country to have an impact on the organization’s agenda, and will have a positive effect on the international standing of Israeli financial institutions.

The Supervisor of Banks, Dr. Hedva Ber, emphasized the great importance that the Banking Supervision Department places on meeting the international FATF’s standards. The Supervisor noted that this effort was valued in audits conducted by Moneyval since 2008, which have indicated the good state of regulation that applies to Israel’s banking system with regard to compliance with international standards. In the last audit, in 2013, the Banking Supervision Department earned the maximum grade of Compliant in the regulation and supervision areas.

(Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism – MONEYVAL is a permanent monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering and the financing of terrorism and the effectiveness of their implementation, as well as with the task of making recommendations to national authorities in respect of necessary improvements to their systems. Through a dynamic process of mutual evaluations, peer review and regular follow-up of its reports, MONEYVAL aims to improve the capacities of national authorities to fight money laundering and the financing of terrorism more effectively).

(YWN – Israel Desk, Jerusalem)