Israel Country Summary
Medium Risk
View full Ratings TableSanctions
Medium Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Lower Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Israel is not currently on the FATF list of Countries that have been identified as having strategic AML deficiencies.
Compliance with FATF Recommendations
The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Israel was undertaken in 2022. According to that Evaluation, Israel was deemed Compliant for 16 and Largely Compliant for 19 of the FATF 40 Recommendations. It was deemed Highly Effective for 3 and Substantially Effective for 5 of the Effectiveness & Technical Compliance ratings.
Sanctions
Several countries have enforced targeted sanctions against Israel by sanctioning individual Israeli settlers and certain government officials, rather than imposing a comprehensive state-wide embargo; notable actions include the United States' OFAC designations of West Bank settlers and related entities, and the European Union's 2024 measures targeting Lehava, Hilltop Youth, and additional individuals and entities under the Global Human Rights Sanctions Regime. Further measures have been taken by the United Kingdom, Canada, Australia, Japan, New Zealand, and Norway against senior Israeli ministers Itamar Ben-Gvir and Bezalel Smotrich and various settlers or affiliated groups, while the Arab League has imposed boycott-related sanctions on companies investing in settlements.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 62 |
| World Bank: Control of Corruption Percentile Rank | 79 |
Israel faces significant challenges related to crime and corruption, particularly with organized crime, human trafficking, and financial crimes. While the government has established robust anti-corruption laws and maintains independent law enforcement agencies, issues such as discrimination against minorities and political corruption undermine public confidence and stability.
Economy
Israel's economy is characterized by a robust entrepreneurial spirit and a highly skilled workforce, making it a global leader in innovation, particularly in the high-tech sector, which significantly contributes to its GDP and exports. Despite facing severe disruptions due to recent conflicts, including the October 2023 terrorist attacks, the economy is projected to recover, with GDP growth expected to reach around 3% in 2025. The Israeli government actively promotes foreign investment through various incentives and a transparent regulatory framework, although challenges such as monopolies and high living costs persist, necessitating ongoing reforms to enhance competition and reduce barriers for investors.
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