The Banking Corporations Sanctions Committee that oversees the prohibition on money laundering and terror financing yesterday imposed a NIS 4.2 million fine on Bank Leumi (TASE: LUMI) for violations of regulations under the Prohibition on Money Laundering Law.
Bank Leumi has 30 days after the ruling to file an appeal in the Magistrates Court. The violations and failures are based on the findings of an audit report by the Bank of Israel Banking Supervision Department at Bank Leumi in 2014. The audit report found a number of violations of the Anti-Money Laundering Ordinance, for which Bank Leumi was fined.
The violations resulted from failure to report irregular activity by customers and omissions in the information reported to the Israel Money Laundering Prohibition Authority.
The Sanctions Committee took into account Bank Leumi's cooperation with the audit and its actions to correct the failures.
The audit report on which the request to impose monetary sanctions on Bank Leumi was based was conducted according to the Banking Supervision Department's regular work plan, and is not related to the audit of Bank Leumi's conduct that led to its settlement with the US authorities.
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2015
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