A recent report by the European Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, released last week, has both praised and criticized Israel's efforts on the matter, a Justice Ministry statement said Monday. The MONEYVAL committee report reviewed the Israeli authorities' efforts to enforce and prevent money laundering and the financing of terror activities on various levels, including intelligence, investigation, regulation, seizure, prosecution, and collaboration with law enforcement agencies worldwide. The Israeli mission to MONEYVAL comprised Justice Ministry and State Attorney's Office officials, as well as police officers, Bank of Israel and Israel Securities Authority officials, and representatives from the Israel Money Laundering and Terror Financing Prohibition Authority. According to the Justice Ministry, Israel was praised for its efforts to streamline its enforcement and regulatory operations, and the Money Laundering and Terror Financing Prohibition Authority received a special citation for its compliance with the international guidelines in the field. Nevertheless, Israel was criticized for being the only MONEYVAL member that has yet to fully impose the guidelines meant to prevent money laundering and the financing of terror activities on non-financial sectors, such as law and accountancy firms, real estate agents and trust companies. The lack of regulation of the diamond industry -- one of Israel's main exporters -- was also criticized, as the committee asserted that the diamond industry is at a particularly high risk. Similar criticism was leveled at the service providers' sector, which the committee said was also at high risk for money laundering. The committee said that Israel has so far failed to enforce the international guidelines pertaining to this sector. Israel was ordered to submit to another review of these sectors next year. Attorney Paul Landes, director of the Money Laundering and Terror Financing Prohibition Authority, who headed the MONEYVAL mission, expressed his satisfaction over the committee's recognition of Israel's impressive efforts and achievements in the field. Landes also expressed his concern about the international implications should Israel fail to vigorously pursue legislation in the fields for which it was criticized.
Israel lauded for fighting money laundering, urged to do more
European committee gives Israel mixed reviews for compliance with measures against money laundering and financing of terrorism • Diamond, service providers' sectors found to be lacking • Israel to submit to another review next year.
