Ruth Plato-Shinar

Three Models of the Bank's Fiduciary Duty

Legal systems impose varying degrees of fiduciary duty on the banks. This paper analyses three models, thereby pointing out the differences between them. First, the Anglo-American model, which does not inherently consider the bank-customer relationship as a fiduciary one, yet it states exceptions to the rule. Second, the continental European model, that defines specific cases in which a fiduciary relationship exists. Third, the Israeli model, which applies the fiduciary duty to the bank-customer relationship as a whole and therefore states the widest standard of conduct for the banks. This paper concludes that a certain harmonization of the principle would be beneficial to the financial markets.

Israel: The Impact of the Anti-Money Laundering Legislation on the Banking System

Describes the background to the Prohibition on Money Laundering Law, 5760‐2000, which criminalises money laundering and reflects the fact that Israel had become a haven for money launderers in the preceding decade. Lists offences under this law, obligations imposed on providers of financial services, enforcement and sanctions, the Competent Authority and the Database of reports on irregular or suspicious transactions and activities. Moves on to the Prohibition on Money Laundering Order, 5761‐2002, which imposes obligations on banks of identification, reporting and record‐keeping. Outlines finally the guidelines on Prevention of Money Laundering, Identification of Customers and Record‐Keeping.

The Israeli legislation against terrorist financing

Outlines the main laws in Israel regulating financing of terrorism: the Defence (Emergency) Regulations 1945, the Prevention of Terrorism Ordinance 5708‐1948, the Penal Law 5737‐1977, the Prohibition on Money Laundering Law 5760‐2000, the Combating Criminal Organisations Law 5763‐2003, and the Prohibition of Terrorism Bill 5763‐2003. Details the provisions of this last Bill; they cover government declaration of an organisation or person engaging in terrorism, offences under the law, administrative seizure proceedings, forfeiture of property in criminal proceedings, and amendments to the Prohibition on Money Laundering Law. Concludes that together the recent legislation provides a secure normative framework against terrorist financing.