Jerusalem, 17 May, 2026 (TPS-IL) — On April 23, 2026, the Money Laundering Prohibition Order (Identification, Reporting, and Record-Keeping Obligations to Prevent Money Laundering and Terrorist Financing of Non-Interest Deposit and Credit Service Providers That Are Charitable Institutions) was published.
“The order constitutes a central pillar in completing the regulation of the field of charitable institutions in Israel, and applies to charitable institutions a compliance regime in the field of the prohibition of money laundering and terrorist financing, in accordance with the accepted principles in relation to supervised financial entities and taking into account the unique characteristics of the industry,” said the Anti-Money Laundering and Terrorist Financing Authority.
The order established, among other things, provisions regarding customer due diligence, identification and verification of identification details, registration of beneficiaries and controlling shareholders, ongoing monitoring, management and retention of records, reporting obligations to the Authority for the Prohibition of Money Laundering and Terrorist Financing, and checks against designated lists in the field of combating terrorism and financing the proliferation of weapons of mass destruction. In addition, specific provisions were established regarding donations and donors, taking into account the characteristics of the activities of the anti-money laundering and counterterrorism institutions.
The order adopts a risk-based approach and aims to increase transparency and control mechanisms over the activities of the AML institutions, thereby reducing the risk of their misuse for money laundering or terrorist financing purposes. This move is intended to align regulation in Israel with international standards in the field of combating money laundering and terrorist financing, including the principles of the FATF. Regulating the activities of the AML institutions is expected to strengthen certainty and trust in their activities and their ability to act in coordination with the broader financial system, while preserving the unique social model of mutual assistance.