Mandatory Paperwork in Israel to Open an Amuta Bank Account
As discussed in other articles on our website, it is difficult for Israeli amutot to open bank accounts, and this article addresses much of the mandatory paperwork in Israel required for the process.
This Series of Posts
Our lawyers have experience in a variety of fields, including Israeli non-profit law. This article is one in a long series providing useful information to help you administer your non-profit or charitable organization in Israel. Israeli amutot fall under the jurisdiction of the Israeli Corporations Authority, and you can read about this authority or go directly to their unit page under the Ministry of Justice site.
Mandatory Paperwork in Israel for a New Amuta
This is a list of the most commonly-required paperwork to open an amuta bank account.
- Incorporation certification
- Organizational by-laws
- List of Executive Board members and directors
- Protocol for the decision to open the bank account at the particular bank and branch, as well as appointment of individuals as signatories, the terms of approval by signatories for transactions, and access to data of the account
- Documents proving that the signatories are in fact those designated by the organization
- Israeli ID and/or foreign passport of signatories and owners of the account (Executive Board members and directors)
- Information regarding use of the account and scope of finances
- FATCA declarations (for the organization as such, and additionally for US citizens who are signatories and holders of interest in the account)
- Contact information for bank account signatories and Executive Board members and directors
- Letter of approval by an Israeli lawyer confirming the existence of the legal entity (in other words, showing that the corporation — the amuta or cheletz – is still registered, along with its given registration number)
- Declaration regarding holders of interest and beneficiaries of the account
Mandatory Paperwork in Israel for an Existing Amuta
If the non-profit organization is not new and has had previous bank accounts and financial activity, then the bank will likely request further paperwork, namely, the papers listed above and the following:
- Certificate of proper management
- Certificate of recognition by the tax authorities as a public body
- Annual financial reports
- Statements regarding lawsuits that the non-profit is involved in
- Registration papers of the non-profit at the various tax authorities
- Certificate of recognition as a non-profit corporation by the Israel Tax Authority
- List of amuta General Assembly members and cheletz shareholders
- Lists of other internal institutions of the organization (namely, Executive Board, directors, and Audit Committee)
- Lists of executives (for example, the CEO, COO, CFO)
Other Procedures and Paperwork
Considering the above, working with banks as a non-profit requires specialized knowledge in order to deal with the problematic process and documentation organizations are put through by the banks. Depending on the bank and the branch, and even on the division and clerk, the attitude at the bank may be evasive and unhelpful. The bank may ask for documents about the donors before the donors are active, because there is no account. Often the clerks themselves do not know the regulations and procedures of non-profit organizations in Israel and will request documents that are not granted by the authorities before there is a bank account and/or financial activity.
If you would like assistance with mandatory paperwork in Israel, opening a bank account, or on any other matter related to managing an Israeli amuta, please contact us.
Advocate Joshua Pex specializes in Israeli non-profit law and would be happy to discuss the needs of your non-profit organization with you.