NationStates Jolt Archive


Government imposes controls of financial institutions ...

Jeruselem
24-01-2004, 14:53
The Jeruselem government has passed some major reforms to how banks and other financial institutions conduct their businesses which apply in 2 months after a watchdog the Jeruselem Financial Watchdog (JFW) is established.

This was prompted by major undisclosed losses due to unregulated financial transactions in some local corporations

Legal - no change
* Local and international sharemarket transactions
* Currency conversion transactions

Legal - alterations
* Controls over amount of currency speculation
* Controls over specific intra-company operations which can allow companies to falsify financial statements (like Enron, Parmalat)

Banned
* Dealing in deratives and other high risk markets
* Use of shell companies to hide losses

We apologize to foreign companies about this change of policy, but we are discouraging bad accounting and high risk gambling in very unstable markets.