Tighter Regulatory Oversight of Interest-Free Lending Institutions in Israel

Israel’s Capital Market, Insurance and Savings Authority has introduced new regulatory requirements for gemachim – institutions providing interest-free deposit and lending services. The new framework expands reporting obligations and strengthens requirements relating to anti-money laundering (AML), counter-terrorist financing (CTF) and operational risk management.

Importantly, the new requirements place greater responsibility on boards of directors, senior management and designated AML officers, making risk management a core corporate governance responsibility rather than solely a compliance function.

In our latest client update, Adv. Yoav Caspi, Head of our Commercial Department, and Adv. Sharon Kohane, Head of our White-Collar Crime Department, examine the key regulatory changes and the practical steps institutions should take to prepare.

Read the full update in Hebrew.