Prohibition on Money Laundering Law (Amendment No.13), 5774-2014
Amendment
of section 1
1. In Prohibition on Money Laundering Law, 5760-2000 (hereafter: "the law"), in section 1, after the
definition of "customs officer", will be added:
"identification data" – inter alia, Costumer Due Diligence procedure;
Enclosure of
Part 3 in
section 3
2. after section 8a of the law, will be added:
" Part 3: Obligations Imposed on Designated non-financial Businesses and Professions
Obligations
imposed on
DNFBP section
3
8B. (a) in this part"costumer"- one who requests a business service from a DNFBP, provided he is not his
employer;
"DNFBP" – an attorney or an accountant when they provide or being asked to provide a
business service for a costumer, as part of their professional services;
"actions under court supervision"- actions performed pursuant to provisions of any law under
court supervision, inter alia actions under receiverships, liquidations, suspension of
proceedings order according to article 350(b) of the Companies Law, guardianship or estate
planning;
"business service"- any of the following:
(1) buying, selling or perpetual leasing of real estate;
(2) buying or selling of business entities
(3) management of client assets, inter alia managing of money, securities and real
estate, as well as management of client bank accounts or accounts in one of the
financial institutions listed in articles (1)-(4), (6) of the third schedule;
(4) reception, possession or transfer of funds for the creation or operation of
companies;
(5) creation or operation of companies, businesses or trusts for another;
(b) In order to enforce this law, the Minister of Justice, following a consultation with the
Minister of Internal Security, shall issue an order, stating that a DNFBP(1) shall not provide a business service, unless he posses all the identification data, as
stated in the order, of the costumer and of those whore whom or in benefit of whom,
either directly or indirectly, the business service is provided; if the customer is a
corporation or the business service was provided in request of a corporation, the
requirement as aforesaid may include those who have control over the corporation;
for this purpose, "control"- as stated in article 7(a)(1)(b) of this law;
(2) shall make and keep records in the way and for the time as will be stated in the
order, regarding:
(a) identification data according to subsection (1);
(b) any other matter for the purpose of enforcement of this law, as will be
stated in the order;
(c) The Minister of Justice may determine the dates for performing the
obligations set forth in the order under subsection (b);
(d) the provisions of subsection (b), shall not apply on a actions performed
under the framework of a service that is provided to the Government or to a
Government Office or on actions under court supervision;
(e) A DNFBP shall instruct his employees in the ways of fulfilling the
obligations under this section and obligation under any order set forth under
this section, and shall supervise the fulfillment of obligations as aforesaid;
(f) The provisions of this law or of any order set forth under this law can't
impair the provisions of confidentiality as set forth under section 48 of the
Evidence Ordinance [New Version], 5731-1971."
Amendment
of section
11M
3. In section 11M of the law(1) in subsection (a), after paragraph (8), will be adeed:
"(9) with regard to a DNFBP – an employee of the Ministry of Justice, appointed by
the Minister of Justice;";
(2) in subsection (b), instead of "subsections (5) and (7)" will be "subsections (5), (7) and (9)".
Inclusion of
section 11M1
4. After section 11M of the law, will be added:
"11M1.(a) The DNFBP Supervisor may from the following institutions, in regard of the
professionals listed alongside them, information regarding the identity of the professionals,
their address, other contact details, suspension or annulment of their license, and any other
information the Minister of Justice set forth in the order:
(1) Bar Association – in regard of attorneys;
(2) Accountants Council- in regard of accountants;
(b) In order to fulfill its obligations, the Bar Association or the Accountants Council,
as applicable, may receive from the DNFBP supervisor, information regarding the
decisions issued by the committee for pecuniary sanctions according to chapter 5,
regarding any DNFBP who is an attorney or an accountant, as applicable;
Amendment
of section
11N
(c) Notwithstanding the provisions of section 31a, In case a disciplinary rule was set
forbidding the DNFBP to perform any action if he estimates that it violates the
provisions of this law, and the DNFBP Supervisor has a concern that a DNFBP broke
the disciplinary rule as aforesaid, the Supervisor may apply, to any competent body
with a request to open a disciplinary proceeding against the DNFBP, provided that
only the data that arouse the concern of the Supervisor was included in the
application as aforesaid; for this purpose, "competent body"- a body which is
authorized to open disciplinary proceedings against the DNFBP, according to the Bar
Association Act, 5721-1961, or according to the Accountants Act, 5715-1955, as
applicable."
5. In section 11N of the law, after subsection (b), will be added:
"(b1) The Minister of Justice will set regulations regarding the exercise of authority by the
Supervisor under subsection (b)(2), regarding a supervised institution which is a DNFBP.
(b2) Notwithstanding the provisions of subsection (b)(3), if the case of a supervised institution
which is a DNFBP who is an attorney, in regard to inspection and seizure of documents, the
provisions of sections 235a-235d of the Tax Ordinance shall apply, mutatis mutandis."
Amendment
of section 13
Amendment
of PTFL
Commencement
and transitional
provisions
6. In section 13(a) of the law, after "the Governor of the Bank of Israel" will be added "Minister of
Justice".
7. In Prohibition on Terrorist Financing Law, 5765-2005, in section 48(a), instead of "7 or 8" will be
"7, 8a or 8b"
8.
(a) This law shall come into force, on the day of commencement of the Order set forth under
section 8b(b) of the law, according to the wording of section 2 of this law (hereafter:
"commencement day")
(b) Notwithstanding the provisions of section 14 of the law, during the year after the
commencement date, no pecuniary sanctions will be imposed on those who fail to comply
with the provisions of section 8b of the law, according to the wording of section 2 of this law,
instead a he will receive a written notice of a violation as aforesaid.