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 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
A number of countries have imposed targeted sanctions against Israel, focusing on individual ministers such as Itamar Ben-Gvir and Bezalel Smotrich and on settlers involved in West Bank violence, as well as organizations tied to settlement activity or alleged human rights abuses. These measures come from the European Union, United Kingdom, Canada, Australia, New Zealand, Norway, and Japan in the form of asset freezes and travel bans, with the Hague Group coordinating arms transfer bans in July 2025; the United States does not maintain a comprehensive sanctions regime against Israel and had settler-related sanctions revoked in January 2025.
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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