Israel Country Summary
Sanctions
Arab League
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
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
Israel, as a UN member, must adhere to sanctions measures established by the United Nations to maintain international peace and security. The UN Security Council has implemented 31 sanctions regimes since 1966, which include economic sanctions, arms embargoes, and travel bans, while also considering the rights of those targeted. Currently, there are 15 ongoing sanctions regimes focusing on political settlements, nuclear non-proliferation, and counter-terrorism, managed by a sanctions committee.
Following the invasion by Hamas on October 12, Israel imposed a total siege on Gaza, blocking essential supplies and closing crossing points. Additionally, the Arab League has enacted a systematic boycott against Israel, prohibiting the import of Israeli goods and services and restricting business engagements with entities that operate in Israel.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 62 |
| World Bank: Control of Corruption Percentile Rank | 79 |
Israel has established a robust legal framework to combat corruption, ranking 33rd in Transparency International's 2023 Corruption Perceptions Index. While bribery is illegal and several entities are tasked with enforcing anti-corruption measures, the country has faced criticism for its lack of proactive investigations into foreign bribery, with no prosecutions in the past seven years despite numerous allegations. However, recent developments, such as the formation of an Inter-Ministerial Team on foreign bribery and enhanced sanctions, indicate a commitment to improving enforcement and awareness in this area.
Economy
Israel's economy is characterized by a strong entrepreneurial spirit and a highly educated workforce, making it a leader in innovation across various sectors. Despite facing significant challenges due to recent conflicts, including a sharp GDP decline of 20.7% in late 2023, the economy showed resilience with a 3.35% growth in early 2024 and is projected to continue growing in the coming years. The country has transformed from a low-end manufacturing economy to a diverse, high-tech driven economy, supported by substantial foreign investment and a robust bilateral trade relationship with the United States.
Israel's investment climate is characterized by a strong openness to foreign investment, supported by government initiatives such as the 'Invest in Israel' program, which facilitates foreign capital inflow and provides guidance on regulations and incentives. The country boasts a vibrant high-tech sector, with significant U.S. investment and a robust network of research and development centers, although challenges such as monopolies and trade barriers persist, impacting competition and the cost of living.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
