On 11.19.2014, the Supervisor of Banks issued a draft of instructions concerning foreign residents’ banking activities. The provisions shall apply to all corporations in Israel. Due to their importance, we have translated the draft.
To: Banking Corporations – to the General Manager
Subject: Foreign Residents’ Banking Activity
4.4. Performance of deals that were defined as material with regards to cross-border risk;
4.5. The client’s link to the country banking services are provided in;
4.6. Change of identification details that may affect the client’s taxability;
4.7. classification for private banking as defined in the Provision;
4.8. Classification of high-risk clients;
4.9. The chain of command for authorization of account opening, management, and transactions;
6.1. Opening an account for a client who does not cooperate with the banking corporation in the required manner to implement the corporation’s policy and procedures for the purpose of cross-border risk.
6.2. Banking services in an existing account that expose the bank corporation to the risk of being held to cooperate with the client to circumvent foreign laws that apply to the client.
David Zaken, the Supervisor of Banks
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