As part of the said Amendment, the Supervisor of the DNFBPs (hereinafter: "Supervisor") was authorized to supervise the performance of the new obligations that were imposed on the DNFBPs by way of conducting routine audits, as of September 2, 2015 (the date the Law and the order promulgated thereunder came into force).
Prior to performing a business service, the DNFBP is required to furnish to its customer a form, as enclosed with the First Schedule of the Prohibition on Prohibition on Money Laundering Order (Duties of Identification, Keeping Records of a DNFBP to Prevent Money Laundering and Terrorist Financing) 5775-2014 (hereinafter: "Order"). The form shall be filled by the customer and shall be delivered to the DNFBP that shall be obligated to keep it for a period of 5 years.
In addition, the DNFBP is required to evaluate whether the action is under a high risk for money laundering or terrorist financing, while using "red flags" that are specified in the Schedule of the Order and as specified in the internet website of the Supervisor. To the extent that the DNFBP does not think that the action poses a high risk, the DNFBP shall confirm by signing the form. In addition, the DNFBP is required to examine whether the customer's name is listed in the list of terror activists and organizations published by the Ministry of Defense.
If the DNFBP is of the opinion that the action in question involves a high risk for money laundering or terrorist financing, it shall refrain from providing the service for the customer, in accordance with the ethical rules of conduct set forth for advocates and auditors regarding this issue.
To the extent that inspection conducted by the Supervisor gives rise to a concern for violation of the ethical code by the DNFBP, the professional bureaus shall receive notice in respect whereof for the purpose of instituting a disciplinary procedure.
In addition, failure to fill in the forms, failure to keep the forms as required for a period of 5 years as required, defective forms or failure to cooperate with the Supervisor in any other manner may result in the imposition of financial sanctions by the sanctions committee in accordance with its statutory powers.