The Commissioner of the Capital Market Authority published a draft circular imposing compliance and anti-money laundering obligations on charitable lending institutions (gemachim). The reform requires appointment of a dedicated compliance officer, enhanced know-your-customer procedures for public figures, and comprehensive preparation for the new era of community credit.
The draft circular, published Sunday afternoon, provides the detailed regulatory framework for the broader oversight measures announced earlier in the day. As The Zioneer reported at 13:19, the Capital Market Authority had announced a new regulation requiring gemachim to expand reporting and appoint an AML compliance officer. The new draft circular specifies that gemachim must appoint a dedicated senior official (nosi masa) for compliance, implement enhanced KYC procedures for politically exposed persons, and prepare for the new era of community credit. The circular is a draft, meaning it is open for public comment before finalization. The move reflects a broader regulatory push to bring community-based lending funds under formal financial oversight, particularly regarding money laundering and terrorist financing risks.
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