Sanctions Committees

The Enforcement Committee is a committee established under the Prohibition on Money Laundering Law, 5760-2000 (hereinafter: “the Law”), and operates according to the directives and regulations set forth therein. It is under the responsibility of the relevant regulatory authority concerning the case brought before the committee.

The committee has the authority to impose financial sanctions on financial entities that have not fulfilled their obligations under the various provisions of the Law and the Prohibition on Money Laundering directives.

Among the financial entities that can be appointed are: banking corporations, currency service providers, insurance agents, portfolio managers, and stock exchange members.

Additionally, the committee has the authority to impose financial sanctions on individuals who have violated the reporting requirement of money upon entering or leaving Israel.

In essence, the financial enforcement committees act as a judicial body operating according to principles of administrative law, aiming to provide an alternative route to the criminal process while focusing on the efficient, swift, and substantive handling of cases brought before the committee.

The administrative enforcement mechanism is designed to address non-criminal violations. In cases where the committee decides to impose a financial sanction, it can be appealed before the Peace Court. The decision of the Peace Court can be appealed to the District Court.

The financial sanctions received are allocated to the fund established according to Section 36H of the Dangerous Drugs Ordinance (New Version), 5733-1973.