West Bank Country Summary
Medium-High Risk
View full Ratings TableSanctions
Lower Concern
FATF AML Deficient List
Medium Concern
Terrorism
Higher Concern
Corruption
Higher 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
The West Bank/Gaza Strip is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
A Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards has not yet been undertaken for the West Bank/Gaza Strip.
Sanctions
Several countries maintain targeted sanctions against Israeli settlers and actors connected to violence and settlement activity in the West Bank, while the United States terminated its West Bank sanctions in January 2025. The European Union continues asset freezes and travel bans under its Global Human Rights Sanctions Regime, designating nine individuals and five entities linked to abuses in the West Bank, and the United Kingdom, Canada, Australia, Japan, and New Zealand also enforce similar measures against settlers and related individuals or ministers, with the Arab League conducting broader boycotts including a blacklist of 20 companies.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 26 |
In the West Bank, corruption is perceived as a significant issue, with nepotism, favoritism, and embezzlement of public funds being the most commonly identified forms. While the Palestinian Authority has established legal frameworks and institutions, such as the Anti-Graft Law and the Palestinian Anti-Corruption Commission, to combat corruption, the public perception remains that access to power is essential for business success, indicating ongoing challenges in governance and accountability.
Economy
The economy of the West Bank has faced significant challenges following the October 7, 2023, Hamas attack on Israel, leading to a sharp economic downturn characterized by increased restrictions on movement and access, reduced revenue transfers from Israel, and the loss of work permits for over 170,000 Palestinian workers. The Palestinian Central Bureau of Statistics reported a 28% decrease in GDP, falling to $10.6 billion in 2024, while the unemployment rate soared to 51.2% across the West Bank and Gaza, highlighting the dire economic conditions exacerbated by the ongoing conflict. Despite the potential for growth in sectors such as information technology and agriculture, the economy remains heavily reliant on Israel for trade, with 85% of exports directed there, and is hindered by political instability, fiscal deficits, and limited foreign direct investment due to the prevailing uncertainties.
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