It was also explicitly determined, regarding the provision of information required by the bank in order to dissuade it with respect to the customer's activity, in Civil Case (Haifa) 13195-04-16 M.R.M. Express in Tax Appeal v. Bank Leumi in Tax Appeal [published in Nevo] June 2, 2016) that:
"It is clear that in order to carry out their duties according to the law, the banking institutions have the right to receive all the information they need in order to 'appease their mind' regarding this or that activity in their customers' accounts, and in order to be able to ensure that there is no illegal use of the accounts, and thus they will be able to fulfill their obligations to the regulators and to the public. Moreover, even if such requirements make it difficult for the client and require him to allocate resources and inputs for the purpose of fulfilling them, I am of the opinion that he is obligated to fulfill them, subject to their reasonableness in the circumstances."
Similarly, it was determined in Civil Case (District Live) 33211-05-15 A.Y. Illustration in the Tax Appeal v. First International Bank of Israel [published in Nevo] (9/10/15) that there is no doubt that the bank is entitled - and even obligated - to know who its "real" customer is, who is "standing in front of it", and that it is important to provide accurate information in real time regarding the identity of the customer, including (of course) the controlling shareholders and managers.
In Motion for Opening (Nazareth District) 29308-03-15 Bustan Ha-Hermon Trading in Tax Appeal v. Bank Hapoalim [Published in Nevo] (April 13, 2015) (hereinafter: "Bustan HaHermon Judgment"), the Nazareth District Court discussed a bank decision regarding the closure of the customer's account. In the course of the hearing, the court preceded and distinguished between refusal to open an account in the first place, and a refusal to continue to provide banking service after the account had already been opened. Thus, according to the District Court's approach in the same matter: