Israel has been accepted as a member of a global intergovernmental body dedicated to combating money laundering and terrorism financing, a step that could help it influence policy against regional foes, the Justice Ministry said on Monday.
The Financial Action Task Force confirmed Israel has been accepted as its 38th member, noting that Israel's fight against money laundering and terrorism financing is "one of the three most effective efforts in the world."
The Paris-based watchdog group said that Israel had been an observer in the organization since February 2016 and that its upgrade to membership followed "successful mutual evaluation."
"During this demanding process, the country demonstrated its commitment to protect the integrity of the financial system," FATF President Marshall Billingslea said.
The organization's most recent report found that Israel excels in three main areas: the struggle against terror financing, the efficiency demonstrated by the Israel Money Laundering and Terror Financing Prohibition Authority, and the government's policy of seizing assets and money derived from criminal activity.
Between 2013 and 2017, Israel seized an average of €24.6 million ($28 million) in illicit funds every year.
Justice Minister Ayelet Shaked welcomed the announcement, saying, "This is an achievement akin to Israel's acceptance to the Organization for Economic Cooperation and Development."
Lauding the fact that Israel ranks third in the world, after the United States and Britain, in its efforts to curb money laundering and terror financing, Shaked said, "The FATF is an organization that sets the global agenda on these issues and joining it is a national and diplomatic achievement that will contribute to Israel's ability to fight terror financing in the international arena."
"This also strengthens the Israeli economy, positions Israel as an attractive destination for international investments, and improves the Israeli financial sector's ability to operate in the global economic arena," she said.
Attorney General Avichai Mendelblit said, "The FATF's decision to have Israel join its ranks reflects the work of all law enforcement agencies in Israel, their cooperation on all aspects of integrated economic enforcement, and Israel's deep commitment to fighting serious criminal activity, money laundering of and terror financing.
"I lend great importance to the continued consolidation and strengthening of our capabilities in this field, in order to further effectively promote undermining the funding and financial infrastructure of crime and terrorist organizations in Israel," he said.
Shlomit Wagman-Ratner, head of the Anti-Money Laundering and Terrorism Financing Department at the Justice Ministry, said joining the FATF was a national strategic objective that would allow the Israeli financial sector to function more easily in the international economy.
"An additional significant factor is that, for the first time, Israel will be able to take part in setting international rules in the realm of terror financing and money laundering, rules that it is subject to in any event," she said.
Israel's arch-foe Iran has been under scrutiny from the FATF. Israel has also lobbied world powers to help cut funding for Hezbollah and Hamas, its Lebanese and Palestinian enemies.
