in places like Hong Kong and Singapore. Such outsourcing is illegal in Korea. "Such practices are part of the foreign banks' desire to manage their entire Asian portfolio," Kim said. "In cases of big investment banks, trading on a regional level can have a great impact on the domestic financial markets as such management can lead to sharp changes to the portfolios of the banks' local branches." The FSS plans to inspect 15 foreign banks operating in Korea every year to monitor their fund management from this year, citing the need to proactively manage potential market risks. "Foreign banking branches (in Korea) are considered to have a great effect in increasing the volatility of capital flows in and out of the market," the FSS said in a separate statement, adding such branches tend to take on short-term foreign currency borrowings to conduct derivatives or government bonds trading. Kim told reporters HSBC Holdings PLC and Credit Agricole S.A. have already been sanctioned for improper outsourcing of operations involving derivatives. He added that another European bank may be sanctioned fot in the West Bank in September after an expected U.N. vote to recognize Palestinian independence. "The Israel police is currently preparing for September, and for the possibility that various declarations regarding a nonviolent civil struggle against the background of a declaration of a Palestinian state will end up becoming a violent conflict and turn into wide-scale rioting," Yochanan Danino told the Jerusalem Post. The commissioner tells the Post that his forces face a "new reality" in attempts to infiltrate Israel's borders. "In this reality, we are obligated, as a security force, to expect all possibilities and various scenarios, and prepare accordingly. This is a national mission and a national challenge," Danino told the paper. Another official said the army hopes to avoid civilian casualties but would set "red lines" for the demonstrations. That means Israel will not allow demonstrators to burst across the borders during the coming week's protests -- as they did on the Syria-Israel border on May 15 -- or to enter Jewish settlements in the West Bank in September. He said Israel will not react to nonviolent demonstrations, including large gatherings near the settlements, but that it would be forced to take action in "life-threatening" situations. On May 15, the day on which Palestinians mourn the anniversary of Israel's founding, hundreds of demonstrators in Syria broke through the frontier and entered the Israeli-controlled Golan Heights, while in Lebanon, large crowds converged on the border. Some 14 protesters were killed in clashes with Israeli soldiers, who were