The Israel Securities Authority has fined Harel Finance Holding Ltd. NIS 150,000 for violating the provisions of the Prevention of Money Laundering Law (5760-2000) and Prevention of Money Laundering Ordinance. A Securities Authority investigation between November 2009 and May 2010 found that the company violated provisions relating to the identification, reporting, and registration requirements that apply to a Tel Aviv Stock Exchange (TASE) member.
The Securities Authority said, "The identification, reporting, and registration requirements are fundamental for applying the provisions of the law and for locating and enforcing money laundering activity and against organized crime. They are the regulators' tools for overseeing financial operations carried out by financial services providers in general, and in the case in question of a TASE member, for investigating money laundering activity. When a TASE member violates these provisions, it basically sabotages the ability to audit and supervise financial activity it carries out."
The Securities Authority took into account the small scale of the violations relative to the number of portfolios examined and the actions taken by Harel Finance to apply the provisions of the law and the ordinance in its day-to-day business. These activities include training employees about the prevention of money laundering, updating procedures, and flagging suspicious deals.
Harel Finance is a unit of Harel Insurance Investments and Financial Services Ltd. (TASE: HARL).
Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2011
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