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13.03.12
 
Imposing of financial sanctions on bank corporations
The Supervisor of Banks has imposed a financial sanction on Bank Hapoalim for charging fees for closing accounts and transferring activity which are not in accordance with the fee schedule. Likewise, the Supervisor imposed a financial sanction on Israel Discount Bank for holding means of control in a non-financial corporation at a share above that permitted by law.
 
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In accordance with his authority according to section 11(a) of the Banking (Service to Customer) Law, 5741-1981, the Supervisor of Banks imposed a financial sanction of NIS 600,000 on Bank Hapoalim for charging fees not set in Bank Hapoalim's full fee schedule.
The financial sanction was set following the findings of an examination by the Banking Supervision Department which showed that when customers closed an account, they were being charged fees which were not set in the bank's fee schedule. The bank identified the accounts which were charged these fees over the past seven years, and is working to identify the customers who are entitled to a refund. The total amount of the refunds for those accounts is about NIS 5 million. Likewise, the bank took steps to prevent a recurrence of the deficiencies found by the Banking Supervision Department in this area.
A civil fine of NIS 112,950 was imposed on Israel Discount Bank in December 2011 for the holding of a 25 percent share in the means of control in a non-financial corporation as defined by law; this is higher than the maximum 20 percent share for such a holding, which was set in section 11 of the Banking (Licensing) Law, 5741-1981.
The financial sanction noted above was imposed on Israel Discount Bank under the authority granted to the Supervisor of Banks in section 50(b) of the Banking (Licensing) Law, 5741-1981, and took into account the fact that the bank rectified the violation immediately after it was brought to its attention.