New Provisions to Money Laundering Regulation Requirements for banks and their clients
As of 12.2.08, the recent amendments to the money-laundering order will come into force. Inter alia, these amendments include a list of the types of transactions in which the bank is obligated to check the personal details of the parties to the transaction against the list of organizations and people that have been declared to be involved in terror activities.
These amendments also include the following changes regarding checks drawn on banks in the Palestinian Authority:
Identification details are required on the face of the check
When depositing checks drawn on a bank in the Palestinian Authority, the bank must ensure that the identification details of the account owner appear in Latin characters and conventional numerals in Israel (regardless of the sum specified on the check). Checks lacking all the identification details as detailed below will not be accepted for crediting the customer's account:
• Individuals – Given name, surname and identity number;
• Corporations – The name of the corporation and its registration number.
Non-acceptance and non-payment of endorsed checks
Endorsed checks (with more than one endorsement), drawn on a bank in the Palestinian Authority, will not be accepted for depositing to the credit of the customer's account. A check drawn on a bank in the Palestinian Authority will be credited to the account of the customer solely if the customer is the payee featured in the face of the check as required and his is the only endorsement for the purpose of depositing the check in his account.
Similarly, a condition for payment of a check presented by a bank in the Palestinian Authority is that the check has only one endorsement.
Remember!
Leumi will not honor a check drawn on a bank in the Palestinian Authority that has more than one endorsement, which the payee on the front of the check requests to deposit in an account in his name.
Delay of the credit and debit dates
Note: checks drawn on a bank in the Palestinian Authority, dated for deposit or settlement from the 12.2.08 – crediting the Leumi customer’s account and the corresponding debiting of the Palestinian bank, will be delayed by one business day from the date that has been the custom up to the present.
