**RESHUMOT**
**Collection of Regulations**
**11527**
**4 Heshvan 5785, November 5, 2024**

| Page | Subject |
| :--- | :--- |
| 88 | Prohibition of Money Laundering Order (Identification, Reporting, and Record-Keeping Obligations of a Payment Company for the Prevention of Money Laundering and Terrorist Financing), 5785-2024 |
| 112 | Correction of Error in the Prevention of Threatening Harassment Regulations (Procedures), 5784-2024 |

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**Prohibition of Money Laundering Order (Identification, Reporting, and Record-Keeping Obligations of a Payment Company for the Prevention of Money Laundering and Terrorist Financing), 5785-2024**

By virtue of my authority under sections 7(b), (c), and 32(c) of the Prohibition of Money Laundering Law, 5760-2000 (hereinafter - the Law), section 95(a) of the Counter-Terrorism Law, 5776-2016 (hereinafter - the Counter-Terrorism Law), section 8(a) of the Law for the Prevention of Proliferation and Financing of Weapons of Mass Destruction, 5778-2018 (hereinafter - the Law for the Prevention of Proliferation of Weapons of Mass Destruction), and regarding regulation 23a - by virtue of my authority under section 36 of the Regulatory Principles Law, 5782-2021 (hereinafter - the Regulatory Principles Law), after consultation with the Minister of National Security and the Minister of Justice and with the consent of the Minister of Justice, and with the approval of the Constitution, Law and Justice Committee of the Knesset, I hereby order as follows:

### **Chapter A: Interpretation**

**1. Definitions**
In this Order:
**"Region"** – Any of these: Judea and Samaria and the Gaza Strip;

**"Foreign Public Figure"** – A foreign resident holding a senior public position outside of Israel in the last five years, including a family member of such a foreign resident or a corporation under his control, a consultant, a personal appointee of the foreign public figure, or a business partner of any of these; for this purpose, **"senior public position"** - including a head of state, president, city mayor, judge, member of parliament, senior party official, cabinet member, senior military or police officer, senior official in a government-owned company, a senior official in an international organization, or any person performing such a role even if their title is different;

**"Apostille Convention"** – The convention abolishing the requirement of legalization for foreign public documents as defined in the Hague Convention Implementation Regulations (Abolition of Legalization for Foreign Public Documents), 5737-1977;

**"Means of Payment," "Issuance" of a means of payment, "Payment Account," "Beneficiary," "Payer," "Clearing" of a payment transaction, "Payment Transaction," "Advanced Initiation Service"** – As defined in the Payment Services Law;

**"FATF Organization"** (Financial Action Task Force) – The international organization for the fight against money laundering and terrorist financing;

**"OECD Organization"** – The Organisation for Economic Co-operation and Development;

**"Stock Exchange"** – A stock exchange or a regulated market as defined in the Joint Investment Trust Law;

**"Family Member"** – As defined in the Securities Law;

**"Postal Bank"** – The Company in providing financial services on behalf of the subsidiary, or the subsidiary in providing financial services, according to the Postal Law, 5746-1986; for this definition – "the Company," "financial services" as defined in said Law and "the subsidiary" as defined in section 88ya of said Law;

**"Stable Payment Service Provider Licensee"** – One who holds a stable payment service provider license as defined in section 36i of the Banking (Licensing) Law;

**"Recognized Body"** – A workers' committee or a representative of a joint house;

**"Supervisor's Instructions"** – Instructions given by virtue of section 11yg(c) of the Law;

**"Know Your Customer"** – The process of knowing the customer according to section 2 of this Order;

**"Civil Administration"** – The Civil Administration established by the Commander of the IDF Forces in the Region;

**"The Supervisor"** – As defined in section 11yg(a)(2) of the Law;

**"The Lists"** – Each of these:
1. A concentrated list of declared terrorist organizations and of anyone declared a person who is a terrorist operative, published in a notice according to section 18 of the Counter-Terrorism Law; and also such an organization or person for whom a notice of their declaration was delivered to the service provider in the manner prescribed under section 18 of the Counter-Terrorism Law, and the service provider has not received notice of its cancellation;
2. The list of entities declared as aiding the proliferation and financing of weapons of mass destruction according to sections 3 or 4 of the Law for the Prevention of Proliferation of Weapons of Mass Destruction;

**"Management Company"** and **"Provident Fund"** – As defined in the Control of Financial Services (Provident Funds) Law, 5765-2005;

**"Payment Company," "Funds," "Provision of Credit via Payment Transaction,"** and **"Payment Services"** – As defined in the Regulation of the Occupation of Payment Services Law;

**"Trust Law"** – The Trust Law, 5739-1979;

**"Regulation of the Occupation of Payment Services Law"** – The Regulation of the Occupation of Payment Services and Payment Initiation Law, 5783-2023;

**"Joint Investment Trust Law"** – The Joint Investment Trust Law, 5754-1994;

**"Population Registry Law"** – The Population Registry Law, 5725-1965;

**"Securities Law"** – The Securities Law, 5728-1968;

**"Payment Services Law"** – The Payment Services Law, 5779-2019;

**"Vendor Account"** – An account concentrating debits and credits of a vendor via a means of payment, by virtue of an engagement agreement with a settler;

**"Individual"** – Someone who is not a corporation, or is not a public institution or is not a corporation established by legislation under foreign law in the country where it was established outside of Israel or is not a recognized body;

**"Credit Card"** and **"Bank Card"** – As defined in section 11b(a) of the Banking (Licensing) Law, including a card issued by a foreign corporation that is a bank in a foreign country;

**"Debit Card"** – A credit card, bank card, or payment card;

**"Payment Card"** – A means of payment intended for performing payments, purchases from a vendor, or cash withdrawals, whether monetary value can be accumulated in it or not;

**"Aggregator"** – A payment company that concentrates debits and credits of vendors performed via debit cards;

**"Insurer"** – As defined in the Control of Financial Services (Insurance) Law, 5741-1981;

**"Financial Institution"** – A banking corporation and any body listed in the Third Schedule to the Law, as well as a body incorporated outside of Israel that provides services of the type provided by bodies required to report under section 7 of the Law or acting as an investment bank or a clearing house;

**"Public Institution"** – Government ministries, the Jewish Agency for Israel, local authorities, and other authorities, corporations, or institutions established in Israel by legislation;

**"Proxy"** – A person who is authorized by the service recipient to act on their behalf, whether the service recipient is an individual or otherwise;

**"Official Document"** – A printout, letter, or check bearing the name of the bank or the name of the credit company, as the case may be;

**"Identity Number"** – Each of these:
1. For an individual who is a resident – their identity number in the Population Registry;
2. For an individual who is a foreign resident – passport number or travel document number and the name of the country where the passport or travel document was issued; and for an individual identified by a document as stated in section 4(a)(7) – the identification number in that same document and the name of the country where the document was issued; if the individual is a resident of the Region, the identity number may also be their identity number on a card issued by the Civil Administration;
3. For a corporation registered in Israel – the registration number in the appropriate registry;
4. For a corporation not registered in Israel – the registration number in the country of incorporation, if it exists, and its name, and if there is no registration for corporations of its type – the details registered in the corporation's incorporation document or the registration number assigned to it by the service provider; and for a corporation identified by a document as stated in section 4(a)(8) – the identification number in that same document and the name of the country where the document was issued;
5. For a public institution, a recognized body, an unregistered partnership, and for a corporation outside of Israel established by legislation under foreign law in the country where it was established – the registration number assigned to it by the service provider;

**"Address"** – Each of these:
1. For an individual – their address registered in a document as stated in section 4(a)(1), (2), (7), and (8) or their place of residence, as provided, including the name of the town, street name, house number, if these details exist, and for a foreign resident – also the name of the country;
2. For a corporation – its address registered in a document as stated in section 4(a)(3), (4), and (8), or the place of management of its business in Israel, and if it does not manage business in Israel – the location of its business center outside of Israel, and all these – as provided; the address will include the name of the town, and also the street name, house number, and zip code, if these details exist, and for a corporation outside of Israel – also the name of the country;
3. For a public institution, a recognized body, and for a corporation outside of Israel established by legislation under foreign law in the country where it was established – the address they provided, including the name of the town, street name, house number, and zip code, if these details exist, and for a corporation outside of Israel established by legislation under foreign law in the country where it was established – also the name of the country;

**"Service Recipient"** –
1. Regarding payment services, provision of credit via a payment transaction, and a service listed in Part B of the Seventh Schedule to the Regulation of the Occupation of Payment Services Law, provided through a payment company – someone who receives one or more of these services from the payment company;
2. Regarding sections 3, 15, or 17 in providing credit via a payment transaction – in addition to paragraph (1), also someone who requests to repay the credit and who is not the service recipient;

**"Occasional Service Recipient"** – A service recipient who, during a period of six months, received service from the same service provider in a cumulative amount not exceeding 50,000 New Israeli Shekels, except in the case of a transaction in a cumulative amount exceeding 5,000 New Israeli Shekels involving a country or territory listed in the First Schedule; for this purpose – "cumulative amount" – several transactions of different types related to each other will be considered a single transaction;

**"Population Registry"** – As defined in the Population Registry Law;

**"Beneficiary"** – As defined in section 7(a)(1) of the Law;

**"Officer"** – As defined in the Companies Law, 5759-1999;

**"Service Provider"** – A payment company;

**"Financial Services Provider"** – As defined in the Regulation of Financial Services Law;

**"Payment Service Provider"** – A payment company, banking corporation, or the Postal Bank;

**"Settler"** (Acquirer) – A payment company whose business is the clearing of payment transactions;

**"Vendor"** – Someone who sells real estate, movables, money, services, or rights via an occupation;

**"Lawyer"** – Someone holding a license to practice law in Israel, and regarding a corporation not registered in Israel – also a lawyer holding a license to practice law in the country of incorporation of the corporation, provided that the country or territory where the corporation is incorporated is not listed in the First Schedule; if the country of incorporation is one of the member states of the OECD organization – also a lawyer holding a license to practice law in one of the member states of the OECD organization;

**"Transaction"** – A single action, including a single payment transaction, a single credit provision transaction, a single credit repayment transaction, a single currency exchange transaction, unless otherwise determined in this Order;

**"Prohibition of Money Laundering Order (Credit Intermediation System Operator)"** – The Prohibition of Money Laundering Order (Identification, Reporting, and Record-Keeping Obligations of a Credit Intermediation System Operator for the Prevention of Money Laundering and Terrorist Financing), 5779-2019;

**"Prohibition of Money Laundering Order (Financial Asset Service Providers)"** – The Prohibition of Money Laundering Order (Identification, Reporting, and Record-Keeping Obligations of Financial Asset Service Providers and Credit Service Providers for the Prevention of Money Laundering and Terrorist Financing), 5778-2018;

**"Prohibition of Money Laundering Order (Banking Corporations)"** – The Prohibition of Money Laundering Order (Identification, Reporting, and Record-Keeping Obligations of Banking Corporations for the Prevention of Money Laundering and Terrorist Financing), 5761-2001;

**"Service Provider Group"** – A corporation that is a controlling person in the service provider, a corporation controlled by the service provider, or controlled by a corporation that is the controlling person of the service provider;

**"Fund"** – As defined in the Joint Investment Trust Law;

**"Financial Asset Service Provision License"** – As defined in section 11a of the Regulation of Financial Services Law;

**"Services"** – Payment service, provision of credit via a payment transaction, currency exchange service via a payment transaction, or a service listed in Part B of the Seventh Schedule to the Regulation of the Occupation of Payment Services Law;

**"Name"** – Each of these:
1. For an individual – surname and first name registered in the identification document as stated in section 4;
2. For a corporation – its registered name, and if it was incorporated in a country where no registration of corporations of its type exists – the name as provided;
3. For a corporation established by legislation or a corporation outside of Israel established by legislation under foreign law in the country where it was established – the name determined in legislation or in the legislation under foreign law as stated;
4. For a recognized body, an unregistered partnership, and a public institution, except for a corporation established by legislation – the name as provided;

**"Corporation"** – Each of these:
1. A company, partnership, cooperative society, Ottoman society, association, or party registered in Israel;
2. A body registered as a corporation outside of Israel;
3. A body incorporated in a country where no registration of entities of its type exists, provided it presented a document testifying to its being a corporation;

**"Related Corporation"** – A corporation in which the service provider is a controlling person, or in which the controlling person of the service provider is also its controlling person;

**"Resident"** – As defined in the Population Registry Law, including an Israeli citizen who is not a resident as stated, registered in the Population Registry;

**"Resident of the Region"** – Someone registered in the Population Registry of the Region;

**"Foreign Resident"** – An individual who is not a resident;

**"Evidence Regulations"** – The Evidence Regulations (Photographic Copies), 5730-1969.

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### **Chapter B: Identification Obligations**

**2. Know Your Customer**
(a) Know Your Customer includes, among other things, an inquiry into these details:
1. The source of the funds for which the services are provided;
2. The source of the credit repayment and the connection of the service recipient to whoever undertook to repay the credit or whoever requests to repay the credit;
3. The occupation of the service recipient;
4. The purpose of the requested service and whether receipt of services was refused in the past by any entity for reasons of suspicion of money laundering or terrorist financing;
5. Regarding a foreign resident – also an inquiry into their connection to Israel and an inquiry into whether they are a foreign public figure;
6. Regarding a foreign public figure, the service provider will classify them at a high risk level – including the source of their financial resources;
7. Regarding someone who is a business owner – also the type of their business.

(b) A service provider shall not provide service, for the first time, to a service recipient who is not an occasional service recipient, without identifying the service recipient and without performing a Know Your Customer process regarding them, according to their risk level for money laundering and terrorist financing; the service provider shall keep records of the Know Your Customer details.

(c) In providing service to a service recipient who is not an occasional service recipient, who is a foreign public figure or in a case where the beneficiary is a foreign public figure, the service provider shall act according to these instructions:
1. The service provider shall not provide service, for the first time, unless approval was received for this from an officer in the service provider, or from the person responsible for fulfilling the corporation's obligations under section 8 of the Law and provided that they are directly subordinate to the senior management in the service provider; granting of such approval will be examined according to the risk level of the service recipient for money laundering and terrorist financing;
2. If it becomes clear after providing the service that the service recipient or the beneficiary is a foreign public figure, the service provider shall not provide them with additional service until approval is received from an officer in the service provider or from the person responsible for fulfilling the corporation's obligations under section 8 of the Law and provided that they are directly subordinate to the senior management in the service provider according to paragraph (1).

(d) An inquiry into whether a person is a foreign public figure, according to this Order, may be done according to a form published by the Supervisor in which the details determined according to this Order shall be included.

(e) A service provider shall not open payment accounts under fictitious names or numbered accounts.

**3. Registration of Identification Details**
(a) A service provider shall not provide service to a service recipient, for the first time, without recording for the service recipient and for the proxy the identification details listed below, and without verifying the identification details if required to do so under section 4, unless they already possessed verified identification details as stated:
1. Name;
2. Identity number;
3. For an individual – date of birth; for a corporation – date of incorporation;
4. Address.

(b) Notwithstanding the provisions of subsection (a) –
1. Registration of identification details for an occasional service recipient and for a proxy on their behalf shall include the details determined in paragraphs (1), (2), and (4) only, and shall be done in this manner:
   (a) Performing a transaction up to an amount of 500 New Israeli Shekels that the service provider defined as a low-risk transaction – according to details provided by the service recipient;
   (b) Performing a transaction that is not a transaction as stated in subparagraph (a) – according to an identification document as specified in section 4;
2. The service provider may provide service without verifying the identification details of the service recipient as specified in section 4, provided that these conditions were met:
   (a) The provision of the service is at a low risk level considering the service recipient and the transaction;
   (b) The service provider received, prior to performing the transaction, the identification details as specified in this section;
   (c) Receipt of identification documents and their verification as specified in section 4 will be performed within a reasonable time from the date of the transaction; the Supervisor may publish in instructions a list of reasonable times for different circumstances.

(c) A service provider shall not provide service to a service recipient who is not an occasional service recipient without recording for a beneficiary the details in subsection (a)(1) and (2); registration of details shall be done according to the declaration as stated in section 5; if the service provider does not have the beneficiary's identity number, after taking reasonable measures to obtain it, they shall record in its place, if they had them, the details in subsection (a)(3) and (4) and also the country of citizenship or incorporation, as the case may be; the provisions of this subsection shall not apply if the service provider found, at the time of providing the service, that it is a service for the benefit of a beneficiary whose identity cannot be known according to the service recipient's declaration, and the reason for the beneficiary's identity being unknown was detailed; in such a case, the service provider shall bring to the attention of the service recipient, in writing, their obligation to deliver the beneficiary's details immediately upon their identity becoming known; this subsection shall also apply to the addition of a beneficiary.

(d) A service provider shall not provide service to a service recipient who is not an occasional service recipient that is a corporation without recording for the controlling person in the corporation and also for the general manager of the corporation or someone performing a similar role even if their title is different, the details in subsection (a)(1) and (2); registration of details regarding the controlling person in the corporation shall be done according to the declaration as stated in section 5; registration of details regarding the general manager of the corporation or someone performing a similar role even if their title is different, shall be done according to details provided by the service recipient; if the service provider does not have an identity number, after taking reasonable measures to obtain it, they shall record in its place, if they had them, the details in subsection (a)(3) and (4) and also the country of citizenship; this subsection shall also apply to the addition of a service recipient that is a corporation.

(e) At the time of a guarantor signing a guarantee in favor of a service recipient towards the service provider, the service provider shall record the identification details of the guarantor, as detailed in subsection (a)(1), (2), and (4), according to an identification document as stated in section 4, and shall keep a scanned copy of the identification document.

**4. Verification of Details and Requirement for Documents**
(a) A service provider shall verify the identification details of the service recipient, except for an occasional service recipient, as listed in section 3(a) and shall receive documents, as detailed below:
1. Regarding the registration of identification details as stated in section 3(a)(1) to (3) of a service recipient who is an individual resident – according to an identification document or a certified copy thereof; regarding verification according to said document, a scanned copy of one of them shall be kept by the service provider; the service provider shall verify the identification details with another document bearing a photo and identity number, and in its absence – with a document bearing a name or identity number as well as an address or date of birth, or alternatively, regarding identification details in an identity card, the service provider may also verify them with the details appearing in the Population Registry, provided they compared the date of issuance of the identity card appearing in it with the date of issuance of the last card registered in the Population Registry at the Ministry of Interior; the service provider shall keep a record of said verification; for this paragraph, the following shall be considered an identification document:
   (a) Identity card;
   (b) New immigrant certificate up to 30 days from the date of its issuance;
   (c) A valid driver's license that includes a photo of the license holder, issued according to the Traffic Ordinance;
   (d) A valid Israeli passport issued according to the Passports Law, 5712-1952;
2. Regarding the registration of identification details as stated in section 3(a)(1) to (3) of a service recipient who is an individual foreign resident – according to a foreign passport or a travel document, or according to a certified copy of an identification document as stated, regarding verification according to said document, a scanned copy of one of them shall be kept by the service provider; if the individual is a resident of the Region, the service provider may also record the identification details according to a card issued by the Civil Administration; regarding verification according to said document, its scanned copy shall be kept by the service provider; the service provider shall verify the identification details with another document bearing a photo and identity number, and in its absence – with a document bearing a name as well as an identity number, address, or date of birth; the service provider shall keep a record of said verification;
3. Regarding the registration of identification details as stated in section 3(a)(1) to (3) of a service recipient that is a corporation registered in Israel – according to the registration certificate or a certified copy thereof, certified copies of the corporation's founding documents, an updated extract of the corporation's details in the appropriate registry, or a lawyer's certification of the corporation's existence, its name, its identity number, and its incorporation date; regarding verification according to said document, the service provider shall receive and keep one of said documents or a scanned copy thereof;
4. Regarding the registration of identification details as stated in section 3(a)(1) to (4) of a service recipient that is a corporation not registered in Israel – according to a document testifying to its registration or a certified copy of said document, if these details appear in the document; if one of the details as stated is missing in the document – according to a lawyer's certification; the service provider shall receive a document testifying to the corporation's registration and a document as specified in paragraph (3) regarding the corporation; for a corporation incorporated in a country where no registration exists regarding corporations of its type, the service provider shall receive a lawyer's certification that no registration exists in the country of incorporation; regarding verification, the service provider shall keep this document or a scanned copy thereof;
5. Regarding the registration of identification details as stated in section 3(a)(1) of a service recipient that is a public institution or a corporation outside of Israel established by legislation under foreign law in the country where it was established – according to the service recipient's declaration, and for a corporation established by legislation – according to a copy the service provider receives of the legislation by virtue of which the corporation was established, or a lawyer's certification of the existence of the legislation; the service provider shall receive documents as specified in paragraph (3) regarding a corporation; regarding verification, the service provider shall keep these documents or scanned copies thereof;
6. Regarding the registration of identification details as stated in section 3(a)(1) and (4) of a service recipient that is a recognized body – according to the declaration of the applicant to receive service, after the service provider is satisfied, according to a document, that the applicant is authorized to act on behalf of the recognized body; the service provider shall keep this document or a scanned copy thereof;
7. Regarding identification details as stated in section 3(a)(1) to (4) of a service recipient who is a minor who has not yet reached 16 years of age or someone for whom a guardian was appointed – according to an identification document of one of their guardians; if the guardian is a foreign resident – according to the minor's passport or according to a certified copy thereof or according to common identification documents in service of this type in the same country where the identification was performed, provided that in this country there exists legislation requiring identification of customers; regarding verification, the service provider shall keep these documents or scanned copies thereof;
8. Regarding providing service outside of Israel, the service provider may, notwithstanding paragraphs (2) and (4), record identification details according to common identification documents in service of this type in the same country where the identification was performed, provided that in this country there exists legislation requiring identification of customers; regarding verification according to an identification document as stated, the service provider shall keep scanned copies of the identification documents.

(b) Notwithstanding the provisions of subsection (a) and section 3, the Supervisor may give Supervisor's instructions regarding alternative digital means for identification and verification.

(c) Regarding a proxy, the service provider shall also receive a copy of a power of attorney, trust deed, or a decision of the authorized organ in the corporation, as the case may be, from the service recipient authorizing the proxy to act on their behalf, including all the identification details of the service recipient; a copy of the power of attorney, trust deed, or decision, as the case may be, shall be kept by the service provider.

(d) A service provider shall keep identification documents in an accessible manner for a period of at least five years from the date of termination of the service or termination of credit repayment, as the case may be, or for a longer period if the Supervisor required them to do so in specific cases where identification documents are required for investigation or for supervision of the implementation of the law's provisions; keeping of identification documents may be done by computerized scanning under the conditions detailed in regulation 3a of the Evidence Regulations; for this matter, **"identification documents"** – any document delivered for the purpose of identification, including a declaration given under this Order and primary documents used by the service provider for Know Your Customer according to section 2(a).

(e) A service provider shall take reasonable measures, according to the risk level for money laundering and terrorist financing, to verify the identification details of a beneficiary and a controlling person, as the case may be, in an engagement as stated in section 3(c) and (d); for this matter, **"taking reasonable measures"** – use of information concerning the matter or data received from a reliable source that satisfies the service provider.

(f) In this section –
**"Certified Copy"** – A copy matching the source verified by one of these:
1. The authority that issued the original document;
2. A lawyer;
3. The service provider or someone on its behalf, including an employee of a related corporation before whom the original document was presented;
4. An authority as stated in section 6 of the Apostille Convention;
5. An Israeli diplomatic or consular representative outside of Israel;
**"Service Recipient"** – including a proxy.

**5. Declaration Regarding Beneficiary and Controlling Person**
(a) At the time of providing service, for the first time, to a service recipient who is not an occasional service recipient, the service provider shall require from the applicant a declaration as to whether they are acting for themselves or for a beneficiary; if the applicant declares as stated that they are acting for a beneficiary – the declaration shall include the details as stated in section 3(c) regarding each of the beneficiaries.

(b) At the time of providing service, for the first time, to a corporation that is not an occasional service recipient, the service provider shall require a declaration from the corporation on the identification details as stated in section 3(d) regarding the controlling person in the corporation.

(c) Upon receiving a declaration according to subsections (a) or (b), the service provider shall update the service recipient on their obligation to deliver an updated declaration if a change occurs in any of the details included in the declaration they gave according to those subsections, and shall require to receive from them an updated declaration if a change occurs in any of the details as stated; the service provider shall document the update of the service recipient as stated.

(d) Declarations as stated in subsections (a) and (b) shall be made according to the wording in the form in the Second Schedule, provided that the declaration is made in a way that the identity of the declarant can be verified.

(e) A service provider shall check the reasonableness of the declaration as stated in subsections (a) and (b), on its face.

(f) The Supervisor may give Supervisor's instructions regarding the manner of providing the declaration as stated in subsection (d).

**6. Partial Exemption from Registration of Identification Details and Declaration of Beneficiary and Controlling Person**
(a) The provisions of sections 3(c) and 5 regarding registration of a beneficiary shall not apply to a service recipient who is –
1. A public institution;
2. A banking corporation, a body listed in the Third Schedule to the Law to which an order by virtue of the Law and by virtue of the Counter-Terrorism Law applies, a fund, or a public endowment registered in the Register of Public Endowments as defined in section 26(c) of the Trust Law;
3. A recognized body;
4. A body receiving service for community purposes for the benefit of a large or undefined group of beneficiaries, provided that approval for this was given by the person responsible for fulfilling obligations under section 8 of the Law in the service provider;
5. A body receiving service for community purposes for the benefit of a large or undefined group of beneficiaries, provided that the balance in the payment account and also every payment transaction do not exceed an amount of 50,000 New Israeli Shekels;
6. A corporation of another type as instructed by the Supervisor in Supervisor's instructions, after consultation with the Competent Authority.

(b) The provisions of sections 3(d) and 5 regarding registration of a controlling person shall not apply to a service recipient who is a banking corporation, the Postal Bank, an insurer, a stock exchange member, a provident fund, a management company, a portfolio manager, a fund, a public endowment registered in the Register of Public Endowments as defined in section 26(c) of the Trust Law, a company holding a trading platform license, a payment company, a financial services provider, a corporation whose securities are traded on a stock exchange in Israel or on a stock exchange in a country that is a member state of the OECD organization or a corporation of another type determined in Supervisor's instructions.

(c) In a corporation controlled by a corporation as stated in subsection (b), the corporation as stated in subsection (b) shall be seen as the controlling person.

**7. Facilitations for a Service Recipient in an Advanced Initiation Service at a Low Risk Level**
(a) In an engagement for the purpose of providing an advanced initiation service at a low risk level, the provisions of section 8 shall not apply and notwithstanding the provisions of section 4(a), the service provider may record identification details according to a copy of identification documents detailed in section 4 provided that they took an additional measure for verification and identification of the service recipient; for this matter, **"additional measure"** – any of these:
1. Comparing the identification details of the service recipient with a copy of an additional identification document bearing a photo and name or identity number;
2. Performing face-to-face identification of the customer via technology that allows visual identification;
3. Comparing the identification details of the service recipient with the Population Registry and comparing the date of issuance of the certificate appearing in it with the date of issuance of the last certificate registered in the Population Registry at the Ministry of Interior;
4. Another measure approved by the Supervisor in Supervisor's instructions.

(b) This section shall not apply if the service recipient is from a country or territory listed in the First Schedule.

**8. Face-to-Face Identification**
(a) A service provider shall not provide service to a service recipient who is not an occasional service recipient, for the first time, without identifying the service recipient or the proxy, as the case may be, face-to-face, according to identification documents as stated in section 4; for this matter, **"face-to-face identification"** – identification via one of these:
1. The service provider or someone on its behalf;
2. Someone holding a license to practice law in Israel;
3. An Israeli diplomatic or consular representative outside of Israel;
4. An authority as stated in section 6 of the Apostille Convention;
5. Another identification approved by the Supervisor in Supervisor's instructions.

(b) A service provider shall record the name and identity number of the person who performed the identification as stated in subsection (a).

(c) Notwithstanding the provisions of subsection (a), a service provider may perform identification of a service recipient via technology that allows visual identification of the service recipient, including a service recipient outside of Israel, according to Supervisor's instructions.

**9. Partial Exemption and Facilitations in Providing Service via a Closed System and a Semi-Closed System**
(a) In this section –
**"Bank Outside Israel"** – A corporation incorporated in one of the OECD member countries, and for which all of these apply:
1. It is engaged in activities the occupation of which in Israel requires a bank license according to the Banking (Licensing) Law;
2. It received approval from whoever is authorized to give it according to the law in the foreign country to engage in activities as stated in paragraph (1), and it is subject to the supervision of whoever is authorized for this in the same country;
3. It is subject to supervision in the field of the prohibition of money laundering and terrorist financing;

**"Another Account"** – An account in a payment service provider or in a bank outside Israel, which has no additional owners except the service recipient, and according to the service recipient's declaration has no beneficiaries other than or in addition to those the service recipient declared for them according to section 5; notwithstanding the above, if the account is in joint ownership of the service recipient and their spouse, the requirement for non-existence of additional owners in the account will be seen as met;

**"Source Account"** – An account in a payment service provider, which has no additional owners except the service recipient and according to the service recipient's declaration has no beneficiaries other than or in addition to those the service recipient declared for them according to section 5; notwithstanding the above, if the account is in joint ownership of the service recipient and their spouse, the requirement for non-existence of additional owners in the account will be seen as met;

**"Closed System Operation"** – An operation in which funds are transferred from a source account and returned to the same source account only, and no other payment transaction is performed in them;

**"Semi-Closed System Operation"** – Each of these:
1. An operation in which funds transferred via a debit card associated with another account are returned to the same service recipient via the debit card from which the funds were transferred initially or to another account, or vice versa, and no other payment transaction is performed in them;
2. An operation in which funds transferred from another account are returned to another account, or vice versa, and no other payment transaction is performed in them.

(b) For a closed system operation, the exemptions and facilitations listed in subsection (d) shall apply, provided that all these were met regarding it:
1. The service recipient is not related to a country or territory from those listed in the First Schedule;
2. The service recipient is not a foreign public figure;
3. The service provider received from the service recipient for the purpose of identification, a copy of an identification document bearing a photo and identity number, and in its absence – a document bearing a name and identity number;
4. The service provider received full details of the source account and also an official document of the payment service provider in which the source account is managed, including the account details of the service recipient and its owners;
5. Verification of the identity of the service recipient was performed against the documents of the payment service provider; for this matter, **"verification of identity"** – checking if the identification details of the service recipient according to section 3(a)(1) and (2) registered with the service provider are identical to the identification details in the official document of the payment service provider as stated in paragraph (4).

(c) For a semi-closed system operation, the exemptions and facilitations listed in subsection (d) shall apply, provided that the conditions detailed in subsection (b)(1), (3), and (5) were met and also these conditions:
1. The service provider received the details of the other account, and if it concerns the use of a debit card, also the last four digits of the debit card through which the funds are transferred, as well as one of these, as the case may be:
   (a) An official document of the payment service provider in which the other account is managed including the account details and the account owner;
   (b) In a debit card associated with a payment account – an official document of the payment service provider including the last four digits of the debit card and the details of the card owner, provided that it appears from it, whether alone or in combination with an official document of the payment service provider, that the debit card through which the funds are transferred is associated with the other account;
   (c) In a credit card not associated with a payment account – approval from the issuer including the last four digits of the credit card and the name of the credit card owner;
2. The service provider identified the service recipient via technology that allows visual identification of the service recipient according to Supervisor's instructions, this being if the risk assessment performed by the service provider regarding the service recipient indicates that identification as stated must be performed.

(d) For a closed system operation and for a semi-closed system operation as stated in subsections (b) and (c), these exemptions and facilitations shall apply:
1. Notwithstanding the provisions of section 8, a service provider shall be exempt from the obligation of face-to-face identification;
2. Notwithstanding the provisions of sections 4(a) and 5, a service provider may –
   (a) Record identification details according to a copy of identification documents detailed in section 4;
   (b) Verify the identification details of the service recipient as determined in subsection (b)(5);
   (c) Not verify the identification details of a proxy.

**10. Electronic Transfers**
(a) A service provider shall not perform an operation via an electronic transfer service to outside of Israel in an amount exceeding 5,000 New Israeli Shekels, without recording in each of the transfer documents the details of the sender in paragraphs (1) to (4) below, as specified in subsection (f), and the details in paragraphs (5) and (6) below, as provided:
1. Name of the sender;
2. Identity number of the sender; if the service provider does not have the sender's identity number – identification number at the service provider, or date of birth or date of incorporation, as the case may be, if said details are known to them;
3. Address of the sender;
4. Account number of the sender in the financial institution from which the transfer was made; if the service provider does not have an account number – another unique identification number, which will allow tracing and identification of the transfer;
5. Name of the receiver;
6. Account number of the receiver, to which the transfer was made; if the service provider does not have an account number – another unique identification number, which will allow tracing and identification of the transfer;

(b) If a service provider performed several electronic transfers to outside of Israel for the same sender in one batch, this batch must include the details in subsection (a) regarding each of the transfers in the batch; for this subsection, **"batch"** – several transfers for the same sender to different receivers, at once.

(c) A service provider shall not perform an electronic transfer operation within Israel, in an amount exceeding 5,000 New Israeli Shekels, without recording in each of the transfer documents the details of the sender detailed in subsection (a)(1) to (4), as provided.

(d) A service provider shall not receive an electronic transfer from outside of Israel in an amount exceeding 5,000 New Israeli Shekels without checking the receiver's name and identity number, as specified in subsection (f).

(e) A service provider shall not receive an electronic transfer from outside of Israel intended for a service recipient who is a financial institution in Israel, without having transferred to the financial institution the details as stated in subsection (a)(1) to (6), and regarding paragraph (3), if it exists; notwithstanding the above, if the service provider has no technical possibility to transfer the details as stated to a financial institution in Israel, the service provider shall keep the details for a period of five years.

(f) The service provider shall record identification details according to this section after checking the identification details according to an identification document as specified in section 4 of the Order; regarding registration of the identification detail of the account number in subsection (a)(4) – the service provider shall record the account number according to a document including the name and account number of the service recipient.

(g) Nothing in the provisions of this section shall detract from the provisions of sections 3 to 4 of the Order.

(h) The provisions of this section shall not apply to performing an advanced initiation service operation.

(i) This section shall not apply to transferring funds to a vendor due to activity stemming from a debit card, provided the service provider recorded in the transfer document the card details.

(j) For this section, **"transfer documents"** – physical or electronic documents required for performing an operation via electronic transfer, whether the transfer is made through the service provider or through another financial institution.

**11. Transition of an Occasional Service Recipient to Become a Service Recipient who is Not Occasional**
(a) Notwithstanding the provisions in this Chapter, an occasional service recipient who became a service recipient who is not an occasional, and was classified at a low risk level for money laundering and terrorist financing, the service provider may continue to provide him service in an additional cumulative amount of up to 25,000 New Israeli Shekels, on condition that the service provider completes the process of identification and verification of said service recipient according to this Chapter, within 14 days from the date on which they became a service recipient who is not an occasional, and except in the case of an operation in which a country or territory from those listed in the First Schedule is involved.

(b) Notwithstanding the provisions in subsection (a), the service provider may complete the identification and verification process of said service recipient within 30 days and on condition that a reasoned approval from the person responsible for fulfilling obligations under section 8 of the Law in the service provider can be given for this; the service provider shall keep a record of the approval as stated.

**12. Supervisor's Instructions**
Notwithstanding the provisions in this Chapter, the Supervisor may, in consultation with the head of the Competent Authority, according to the risk for money laundering or terrorist financing, instruct in a certain case on methods of identification, methods of verifying details, and requirement for alternative documents.

**13. Cancellation of Exemptions and Facilitations**
In providing service regarding which a suspicion of money laundering or terrorist financing arose, if exemptions and facilitations were given, according to section 6 or according to section 11 – they shall be cancelled; the service provider shall consider, according to the risk level for money laundering and terrorist financing, cancellation of facilitations, if given, according to sections 5(f), 7, 8(c), 9, or 12.

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### **Chapter C: Control and Reporting Obligations**

**14. Control**
(a) A service provider shall maintain control over the operations of a service recipient who is not an occasional service recipient, for the purpose of fulfilling their obligations regarding identification, reporting, and record-keeping according to the Law, and shall check that the service recipient's operations are consistent with the nature of their regular activity according to their acquaintance with the service recipient, and this according to the risk level of the service recipient for money laundering and terrorist financing; without prejudice to the generality of the above, a service provider shall maintain:
1. Ongoing control over the Know Your Customer process they performed for the service recipient, according to the risk level of the service recipient for money laundering and terrorist financing, and shall update their records accordingly; if a doubt arose regarding the identity of the service recipient or the truthfulness of the identification documents delivered to the service provider, the service provider shall perform a Know Your Customer process once again according to the risk level of the service recipient and update their records accordingly; if a suspicion of money laundering or terrorist financing arose regarding operations performed by the service recipient, the service provider shall request information and explanations from the service recipient regarding those same operations, and in case of need also supporting documents for information and explanations they gave, and shall update the Know Your Customer records accordingly;
2. Enhanced control –
   (a) On activity performed with countries and territories listed in the First Schedule;
   (b) On activity of a foreign public figure;
   (c) On activity that has a high risk for money laundering or terrorist financing.

(b) For the purpose of fulfilling their obligations regarding identification, reporting, and record-keeping according to the Law, a service provider shall maintain enhanced control over repetitive activity of an occasional service recipient, including activity listed in subsection (a)(2)(a) and (b), which raises a suspicion of money laundering or terrorist financing.

**15. Reporting by a Service Provider**
(a) A service provider shall report to the Competent Authority on operations as detailed below:
1. Performing a payment transaction, providing credit via a payment transaction, or receiving a credit repayment, for a service recipient, in an amount equal to at least 50,000 New Israeli Shekels;
2. Performing a payment transaction, providing credit via a payment transaction, or receiving a credit repayment for a service recipient, in which a country or territory from those listed in the First Schedule is involved, in an amount equal to at least 5,000 New Israeli Shekels;
3. An operation of currency exchange via a payment service or an operation of a service listed in Part B of the Seventh Schedule to the Regulation of the Occupation of Payment Services Law, for a service recipient, in an amount equal to at least 50,000 New Israeli Shekels;
4. An operation of currency exchange via a payment service or an operation of a service listed in Part B of the Seventh Schedule to the Regulation of the Occupation of Payment Services Law, for a service recipient, in which a country or territory from those listed in the First Schedule is involved, in an amount equal to at least 5,000 New Israeli Shekels.

(b) A service provider shall report to the Competent Authority on an operation that appears to them as unusual; for this matter, **"operation"** – including an attempt to perform an operation; without prejudice to the generality of the above, an operation from the operations listed in the Third Schedule may be seen as an unusual operation.

(c) Reporting on an operation according to subsection (a) does not exempt from the reporting obligations according to subsection (b).

(d) A service provider shall report to the Competent Authority on activity of a service recipient on which they reported to the Israel Police according to section 6(a)(1) of the Law, according to section 33(a) of the Counter-Terrorism Law or according to section 6 of the Law for the Prevention of Proliferation and Financing of Weapons of Mass Destruction.

(e) Subsection (a) shall not apply to these types of services:
1. Advanced initiation;
2. Clearing of debit cards for a vendor.

**16. Exemption from Reporting**
A service provider shall be exempt from reporting according to section 15(a) if the operation was performed by one of these:
1. A public institution;
2. A banking corporation;
3. The Postal Bank;
4. An insurer;
5. Another service provider;
6. A provident fund and a management company on behalf of a provident fund under its management;
7. A stock exchange member;
8. A fund;
9. A company holding a trading platform license.

**17. Reporting Details**
Reporting according to section 15 shall include these details:
1. Regarding the service provider –
   (a) Name;
   (b) Identity number;
   (c) Address;
   (d) Telephone numbers, up to two numbers;
   (e) Fax number and email address, if they exist;
   (f) Name and identity number of the person performing verification of the details;
   (g) Type of license and license number the service provider received according to the Regulation of the Occupation of Payment Services Law;
   (h) Address of the branch where the service is provided, if it exists;
2. Regarding the reported operation –
   (a) The date and hour of performing the operation as registered with the service provider;
   (b) Type of operation, including if the financial asset was transferred or received at the service provider;
   (c) Type of financial asset in which the operation is performed;
   (d) The operation amount in Israeli currency;
   (e) If the operation was performed via a payment service;
   (f) Types of foreign currency in which the operation was performed and the amount in the same currency and exchange rate of the currency;
   (g) If the operation was performed in a payment account of the service recipient – account number; type of account; branch where the account is managed, if it exists; account name if it exists; account opening date; regarding a debit card and regarding an account by virtue of an engagement agreement for clearing transactions or discounting transactions made via a debit card – also payment account details with the payment service provider against which the accounting is done due to debit card activity, if they exist;
   (h) In providing credit, credit details – guarantors, if they exist; the serial number assigned by the service provider to the credit, if assigned;
   (i) If the operation is performed online – the IP address through which the service recipient connected to the service provider for the purpose of performing the operation, if it exists;
   (j) If the operation is performed via an application on a mobile device – the International Mobile Equipment Identity (IMEI) of the mobile device through which the operation was performed, if it exists;
   (k) If the operation is performed via a debit card, also the type of card, name of the card brand issued or cleared, the card number if it exists or last four digits of the card, the issuing country, and also name, identity number and payment account number of the cardholder, if they exist;
   (l) In a clearing operation, if the operation was performed in a vendor account, these details regarding the vendor account:
      (1) Vendor account number with a settler;
      (2) Vendor account name, if it exists;
      (3) Vendor account opening date;
      (4) Payment account number of a vendor against which accounting is done due to activity with a means of payment, if it exists;
   (m) If credit is given via an aggregator – also these details:
      (1) Settler's details – name and identity number or license number of the corporation, as the case may be; in this subparagraph, "settler" – a payment company or a stable payment service provider licensee whose business is clearing;
      (2) Vendor's details – name, identity number, address; for an individual – date of birth; for a corporation – incorporation date;
      (3) Debit card details – type of card, card number if it exists or last four digits of the card, the issuing country, as well as name, identity number and payment account number of the cardholder, if they exist;
   (n) An operation was performed via an electronic transfer – name of the service recipient, their identity number and address, and also the name of the receiver or sender, as the case may be, if they are not the service recipient, and also their identity number and address, if they exist, the financial institution number, the branch number, IBAN number, if it exists, and the payment account number in the financial institution to which the transfer is performed, if it exists; however, in an operation against a financial institution in a country or territory listed in the First Schedule – the reported details as stated shall be included, and regarding the name of the sender or receiver, as the case may be, their identity number and their account details in the financial institution, as provided;
   (o) In reporting according to section 15(b) – the reason for reporting shall also be included, including a description of the operation for which the report was filed on all its circumstances, and supporting documents for performing the operation shall be attached to it; reporting according to section 15(b) on an operation whose performer is not a service recipient shall include the details required in paragraph (3) also regarding the performer of the operation, if they were in the hands of the service provider;
3. Regarding the service recipient –
   (a) Name;
   (b) Identity number;
   (c) Address;
   (d) Email address, if it exists;
   (e) Telephone numbers, up to two numbers, if they exist;
   (f) For an individual – date of birth; for a corporation – incorporation date;
   (h) Status of the service recipient – resident or foreign resident, Israeli corporation or foreign corporation;
   (i) The country where the identification document was issued;
   (j) Regarding beneficiaries and controlling persons, if they exist, the details required according to section 3(c) and (d);
   (k) Regarding a proxy, if it exists, name, identity number, for an individual – date of birth, for a corporation – incorporation date and address;
4. In this section, **"financial asset"** – cash, debit card or electronic transfer.

**18. Prohibition of Disclosure and Inspection**
(a) A service provider shall not disclose the fact of the formulation, existence, non-existence, or content of a report according to section 15(b), and also shall not disclose the fact of the existence of a supplementary report as defined in section 31(c) of the Law, the fact of the existence of a request for reporting as stated or the content of one of these, and also shall not allow inspection of documents testifying to each of these; notwithstanding the above, a service provider shall disclose information or allow inspection as stated to someone authorized for this for the purpose of fulfilling their role at the service provider or at a corporation in the service provider group on which a money laundering and terrorist financing prohibition regime applies, to the Supervisor or to someone they authorized, to the Competent Authority or according to a court order.

(b) If a doubt arose regarding the identity of the service recipient or the truthfulness of the identification documents as stated in section 14(a), a suspicion of money laundering and terrorist financing arose as stated in section 14(b), or an operation was performed that appears to be unusual as stated in section 15(b), and the service provider believes that cancellation of exemptions or facilitations according to section 13 or performing control over the Know Your Customer process according to section 14, as the case may be, will lead to a violation of their obligation according to subsection (a), they may refrain from doing so, and report to the Competent Authority on the suspicion as stated.

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### **Chapter D: Checking Identification Details against Lists**

**19. Obligation to Check against Lists**
A service provider shall check against the lists –
1. If they contain the name or identity number of a service recipient, proxy, beneficiary, or controlling person whose details are in the computerized database established according to section 21(a); a check as stated shall be performed every time an organization or person is added to the lists;
2. If they contain the names of parties to an operation, except those listed in paragraph (1); in this paragraph –
   **"Operation"** – a transfer of funds from Israel to abroad or to the Region, or a transfer of funds from abroad or from the Region to Israel;
   **"Party to an Operation"** – someone who is one of the parties to an operation performed through the service provider.

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### **Chapter E: Miscellaneous**

**20. Determining Policy**
A service provider shall decide on policy, tools, and risk management regarding the prohibition of money laundering and terrorist financing for the purpose of fulfilling their obligations regarding this Order, including on these subjects:
1. Know Your Customer process, identification, reporting, and record-keeping;
2. Tracking money laundering and terrorist financing threats, stemming, among other things, from new technologies, especially those allowing performing transactions not face-to-face.

**21. Record-Keeping and Their Preservation**
(a) A service provider shall maintain a computerized database of all the operations and identification and reporting details required according to this Order of service recipients, proxies, beneficiaries, and controlling persons.

(b) A service provider shall keep in an accessible manner details of every financial operation performed within the framework of providing services; regarding every operation, among others, these details shall be kept:
1. Date of performing the operation;
2. Type of operation;
3. Operation amount;
4. The currency in which the operation was performed;
5. IP address, if it exists;
6. International Mobile Equipment Identity (IMEI), if it exists;
7. The instruction document for performing the operation and accompanying business correspondence between the service provider and the service recipient;
And all for a period of at least five years from the date of termination of providing the service or credit repayment, as the case may be; preservation of documents shall be done in a manner that also allows reconstruction of a single transaction; for this section, **"business correspondence"** – operation documents, instructions given in connection with an operation during the business engagement, instructions in connection with the terms of the engagement and inquiry in connection with the service recipient's activity in that same operation.

(c) A service provider shall keep every instruction document in connection with performing an operation on which they reported to the Competent Authority and the reporting itself, for a period as stated in subsection (b).

(d) Preservation of documents as stated in subsections (b) and (c) may be done by computerized scanning under the conditions detailed in regulation 3a of the Evidence Regulations; in the absence of an instruction document for performing an operation as stated in those same subsections, the service provider shall keep the computerized record testifying to the giving of an instruction for performing the operation.

(e) A service provider shall keep written documentation of the control process as stated in section 14 and of its findings for a period as stated in subsection (b).

(f) Notwithstanding the provisions in subsections (b) to (e), a service provider shall keep said documents there even beyond the period of five years if the Supervisor required them to do so, and this in certain cases where said documents are required for investigation or for the purpose of supervision of the implementation of the law's provisions or the Counter-Terrorism Law.

**22. Delivery of Documents, Information, and Explanations**
A service provider shall deliver, upon request, to the Supervisor or to someone the Supervisor authorized for this, documents, information, and explanations in connection with fulfilling their obligations according to this Order.

**23. Applicability**
This Order shall not apply to a payment account and means of payment that is one of these:
(a) A payment card whose possible accumulated balance is limited to an equivalent value of up to 1,000 New Israeli Shekels and the cumulative loading amount in one year in it shall not exceed 10,000 New Israeli Shekels;
(b) A payment card whose possible accumulated balance is limited to an equivalent value of up to 5,000 New Israeli Shekels and the cumulative loading amount in one year in it shall not exceed 20,000 New Israeli Shekels, provided that the activity in it is characterized by a low risk level and also these conditions are met:
   1. The card cannot be loaded with cash and cash cannot be withdrawn through it;
   2. The card does not allow performing payment transactions outside of Israel;
   3. The card will be defined for use in a closed group of businesses that the person responsible for fulfilling the corporation's obligations according to section 8 of the Law in the issuing payment company shall approve.

**23a. Periodic Review**
The Supervisor shall perform a first periodic review of this Order according to section 36 of the Regulatory Principles Law no later than ten years from the date of its commencement.

**24. Commencement and Transitional Provisions**
(a) The commencement of this Order, except for the provisions in subsection (b), is six months from the date of publication of Supervisor's instructions according to sections 4(b) and 8(c) (hereinafter – the commencement date).

(b) The commencement of section 15(a) is six months from the determining date; until its commencement, these provisions shall apply:
1. The service provider shall notify the Supervisor and the Competent Authority, prior to receiving a payment services license, according to which section below they intend to report to the Competent Authority:
   (a) Section 8(a) of the Prohibition of Money Laundering Order (Banking Corporations);
   (b) Section 11(a) of the Prohibition of Money Laundering Order (Financial Asset Service Providers);
   (c) Section 12(a) of the Prohibition of Money Laundering Order (Credit Intermediation System Operator);
2. The provisions the service provider chose as stated in paragraph (1) shall apply to them.

(c) Notwithstanding the provisions in subsection (a), regarding a service provider who provided payment services in Israel on the eve of this Order's entry into force –
1. Regarding such a service provider who held a financial asset service provision license or a clearing license as defined in section 36ya of the Banking (Licensing) Law as worded on the eve of the commencement of the Regulation of the Occupation of Payment Services Law, Know Your Customer, registration of identification details, verification of details and requirement for documents, declaration regarding beneficiary and controlling person, and also face-to-face identification performed before the commencement date, according to sections 2 to 6 of the Prohibition of Money Laundering Order (Financial Asset Service Providers), according to sections 2 to 6 of the Prohibition of Money Laundering Order (Banking Corporations) or according to sections 2 to 6 of the Prohibition of Money Laundering Order (Credit Intermediation System Operator), shall be seen as if they were performed according to sections 2 to 8 of this Order;
2. From the commencement date of this Order and up to 12 months from the commencement date or from the date of receiving the license, whichever is later (hereinafter – the later commencement date), such a service provider who did not hold a financial asset service provision license or a clearing license as defined in section 36ya of the Banking (Licensing) Law as worded on the eve of the commencement of the Regulation of the Occupation of Payment Services Law, shall be seen as one who fulfills the provisions of sections 2 to 8 of this Order, provided that regarding service provided before the later commencement date, the service provider shall act to complete the requirements of the Order within a reasonable time after performing a new operation, except for an operation of withdrawing the existing balance, debt repayment or account closing; for this matter, **"new operation"** – an operation performed by the service provider from the later commencement date onwards, at the request of the service recipient; notwithstanding the provisions in this paragraph, the Supervisor may, regarding a certain service provider who on the eve of this Order's commencement date was subject to a money laundering and terrorist financing prohibition regime according to foreign law, determine that they shall be seen as someone who fulfills the provisions of sections 2 to 8 of this Order regarding someone who was a service recipient before the later commencement date, if they found that circumstances justifying this exist.

(d) Notwithstanding the provisions in subsection (a) and without prejudice to the provisions in subsection (b), a service provider choosing to apply this Order to themselves from the date of its publication, may do so provided they notified the Supervisor and the Competent Authority of this.

(e) In this section, **"the determining date"**, the earlier of these two –
1. Three years from the commencement date;
2. The entry into force of another prohibition of money laundering order that shall be determined by virtue of the Law and shall apply to a service provider.

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### **First Schedule**
(Definitions "Occasional Service Recipient" and "Lawyer" in section 1, sections 7(b), 9(b)(1), 11, 14(a)(2)(a), 15(a)(2) and (4), 17(2)(n) and the Third Schedule)

**List of Countries and Territories**
(1) A country or territory, as shall be determined by the head of the Competent Authority, from the list of countries or territories for which the FATF organization, Moneyval organization, or other international organizations have published reservations regarding their compliance with the organization's recommendations on the subject of the prohibition of money laundering and terrorist financing, all as published on the website of the Competent Authority; the head of the Competent Authority may determine that section 15(a)(2) and (4) of the Order shall not apply regarding part of the countries and territories detailed in this paragraph above; determinations as stated shall be published on the website of the Competent Authority.
(2) The following countries or territories: Iran, Algeria, Afghanistan, Kingdom of Jordan, Palestinian Authority, Lebanon, Libya, United Arab Emirates, Malaysia, Egypt, Turkey, Morocco, Sudan, Somalia, Syria, Saudi Arabia, Iraq, Pakistan, North Korea, Gaza Strip, Tunisia, and Yemen, provided it is not an operation prohibited according to the Trade with the Enemy Ordinance, 1939.

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### **Second Schedule**
(Section 5(d))
**Wording of Service Recipient Declaration**

I (full name) ............................., holder of identity number ............................ hereby declare that:
(1) [ ] I request to receive the service for myself only.
(2) [ ] I request to receive the service for a beneficiary.
(3) [ ] A beneficiary exists, however their identification details are not yet known;
    The reason for this: .................................................................................................
    I undertake to deliver the beneficiary's details immediately upon their identity becoming known;
(4) [ ] The service is provided to a recognized body as defined in the Prohibition of Money Laundering Order (Identification, Reporting, and Record-Keeping Obligations of a Payment Company for the Prevention of Money Laundering and Terrorist Financing), 5785-2024.
(5) [ ] The service is managed for community purposes for the benefit of a large or undefined group of beneficiaries, and the balance in the payment account at the end of every business day and also every payment transaction do not exceed an amount of 50,000 New Israeli Shekels.
(6) [ ] The service is managed for community purposes for the benefit of a large or undefined group of beneficiaries (subject to receiving approval from the person responsible for fulfilling obligations under section 8 of the Prohibition of Money Laundering Law, 5760-2000).
(7) [ ] The beneficiaries of the service provided for me are:
    Name | ID No. | Date of Birth/Incorporation* | Address*
    ................ | ................ | ................................ | ................
    * Required if the service provider does not have an identity number after taking reasonable measures to obtain it.

**Regarding a service recipient that is a corporation:**
(8) [ ] There is no controlling person in the corporation.
(9) [ ] The controlling persons in the corporation are:
    Name | ID No. | Date of Birth/Incorporation* | Address*
    ................ | ................ | ................................ | ................
    * Required if the service provider does not have an identity number after taking reasonable measures to obtain it.

I undertake to notify the service provider, in writing, as soon as possible, of any change in the details I provided above; I am aware that delivering false information, including non-delivery of an update of a detail required for reporting, for the purpose of there being no reporting or to cause incorrect reporting according to section 7 of the Law, constitutes a criminal offense.

Date ............................. Signature .............................

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### **Third Schedule**
(Section 15(b))
**List of operations that might be seen as unusual operations according to the Order**

1. Activity that seems intended to bypass the reporting obligation determined in section 15(a) of the Order;
2. Activity that seems intended to bypass the identification obligation;
3. Refusal of a service recipient to provide identification documents after being requested to do so, without a reasonable explanation;
4. An operation with a high monetary volume or high complexity, without a reasonable explanation;
5. The request to perform the operation is by someone who is not a service recipient, without a reasonable explanation;
6. Credit repayment by someone who is not a service recipient, without a reasonable explanation;
7. It seems that the service recipient acts for a beneficiary, without having declared so;
8. It seems that the requested operation lacks business or economic logic according to his acquaintance with the service recipient;
9. The service provider failed to perform a Know Your Customer process according to sections 2 to 4 of the Order, due to behavior of the service recipient that cannot be given a reasonable explanation;
10. Operations uncharacteristic of the service recipient or several operations to the same destination or from the same source, and all without an apparent reason;
11. The service recipient shows indifference regarding the terms of service, including risks, commissions, costs, interest, and the like;
12. It seems that a link exists between different operations, without a reasonable explanation;
13. An operation in which an organization declared an unlawful association according to regulation 84 of the Defense (Emergency) Regulations, 1945, or an organization declared a terrorist organization according to the Prevention of Terrorism Ordinance, 5708-1948, or an organization declared a terrorist organization according to Chapter B of the Counter-Terrorism Law is involved, as well as an operation that seems intended to replace the activity of an organization as stated;
14. An operation that seems intended to replace the activity of a person declared a terrorist operative according to Chapter B of the Counter-Terrorism Law;
15. Regular transfers from entities in a country or territory from those listed in the First Schedule to the Order, or to entities as stated;
16. A declaration given according to the Order which seems to be incorrect;
17. Activity of a non-profit organization which, to the service provider's knowledge, is in contact with an individual or with a body in a country or territory from those listed in the First Schedule;
18. Activity of a non-profit organization that is inconsistent with the declared activity of the organization, if the declared activity of the organization is known to the service provider;
19. A sequence of operations of the same service recipient whose purpose seems to be bypassing the reporting obligation;
20. Credit repayment in a significant amount close to the time of its receipt, without an apparent reason;
21. Receipt or repayment of credit in a significant amount in cash, without an apparent reason;
22. Operation of a service recipient who declared that the beneficiary is unknown and did not update the declaration within 60 days from granting the service;
23. There is a suspicion that the source of the funds is forbidden property;
24. The IP address does not match the information regarding the service recipient's characteristics, frequent transition between IP addresses or use of means to disguise the connection area or the IP address, and all without a reasonable explanation;
25. According to the IP address, the connection area is in a country or territory from those listed in the First Schedule to the Order, without a reasonable explanation;
26. Activity because of which the service provider decided to refuse to provide service or stop providing service for reasons of prohibition of money laundering or prohibition of terrorist financing;
27. Use of a large number of means of payment in a payment account without a reasonable explanation;
28. Multiple credits in a significant total amount, without a reasonable explanation;
29. Frequent transfers in a significant volume between individuals appearing as unrelated without a reasonable explanation;
30. An individual acting via many payment accounts without a reasonable explanation;
31. Performing multiple operations in a payment account in a short period of time after a period in which the activity in the payment account was meager, without a reasonable explanation;
32. It seems that the service recipient acts against a trading platform for virtual assets that is not supervised or is located in a country or territory at risk.

26 Elul 5784 (September 29, 2024)
(HM 3-6668)
**Bezalel Smotrich**
Minister of Finance

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### **Correction of Error**

In the Prevention of Threatening Harassment Regulations (Procedures), 5784-2024, published in the Collection of Regulations, 11430, 5784, p. 3382, in regulation 9(a), instead of "counter-appeal" (ar'ur she-keneged) it should be "respondent's appeal" (ar'ur meshiv).

(HM 3-6407)
**Yariv Levin**
Minister of Justice

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