Thus, as stated, Section 2A(b) of the Order establishes an ongoing obligation to monitor the customer's activity in order to detect unusual actions in order to update the "Know the Customer that has been prepared for him". A similar provision exists in section 14 of Procedure 411. Moreover, as stated above, Section 15 of Procedure 411 stipulates that with regard to customers who have been classified as high-risk customers, risk mitigation measures must be taken, such as an organized system of control and the implementation of an "enhanced Know Your Customer".
In addition, Section 9 of the Order establishes a duty to report any unusual action of a customer to the competent authority. From the definition of "exceptional action" in accordance with this section, it is possible to further learn about additional indications regarding actions that may affect the classification of the customer and the taking of actions regarding him. Thus, section 9 of the order defines an unusual action as: "an activity that, according to the information in the possession of the banking corporation, has raised a concern that it is related to an activity prohibited under the Prohibition of Money Laundering Law or the Prohibition of Terrorist Financing Law." Without derogating from the aforesaid, it was determined that any activity specified in the second appendix to the order will be defined as exceptional activity, including, which will be considered as exceptional activities: activity that appears to be intended to circumvent the identification obligations; the existence of a beneficiary in an undeclared account or in place of someone who has been declared a terrorist operative; activity that appears to lack business or economic logic, with respect to the type of account or the manner of conduct of the account holder; a number of actions in the account, including, For no apparent reason, funds and securities are withdrawn shortly after they have been deposited, outside the normal course of business; a transfer of a substantial amount from Israel to abroad and vice versa, when the other party to the transaction, origin or destination, is not identified by name or account number; an action in an account that is not typical of the account holder or the type of account, for no apparent reason; an unusual volume of transactions or a significant change in an account balance, for no apparent reason; several transactions in the account for the same destination or from the same source, for no apparent reason; Multiple deposits, for no apparent reason, by a person who is not the account holder or authorized signatory; the absence of a connection between the borrower and the collateral that he has placed against credit to a substantial extent; And so on.
- Reporting - In addition, in order to monitor its customers, as well as increased monitoring in view of the customer's inherent risk or the risk arising from his activities as detailed above, the provisions of the law and procedure impose a duty on the banking corporation to report to the competent authorities any unusual activity of their customers.
The obligation to report was established in Section 7 of the Prohibition of Money Laundering Law and detailed, in accordance with the authority set forth in the law, within the framework of the order. Thus, section 8 of the order imposes on the bank reporting obligations to the competent authority in respect of various transactions carried out in the customer's account, including the obligation to report any deposit or withdrawal of cash in the amount of ILS 50,000 or more [section 8(a)(1) of the order]. In addition, section 9 of the order stipulates a duty to report unusual activity of the service recipient, in accordance with the definition of "unusual activity" as detailed in section 22 above of the judgment.
- Restriction or prohibition of performing actions and closing the account - in this regard, section 24 of Procedure 411 states that:
"The customer's failure to provide details required to comply with the provisions of the order, this provision and the procedures of the banking corporation established thereunder, as well as a reasonable basis to assume that an action related to money laundering or terrorist financing, or the implementation of the banking corporation's policy, as stated in section 41, will be considered as a reason for a reasonable refusal to open and manage an account and to provide services to the perpetrator of an action who is not registered as an owner or authorized signatory to the account for the purposes of the Banking Law (Service to the Customer), 5741-1981. In such a case, the banking corporation will consider reporting to the competent authority an unusual action (in accordance with section 9 of the order)."