Israeli regulators are already considering applications from several cryptocurrency companies for licenses under the new AML rules.
The new Anti-Money Laundering and Terrorist Financing (AML) guidelines set out provisions for user identification and verification and customer recognition procedures. The regulations list the reporting obligations to the authorities that control the activities of users, including reports on standard work and unplanned events in a cryptocurrency company. The rules are accompanied by instructions for keeping records and preserving documentation.
To make it easier for cryptocurrency companies, the guide outlines the conditions for opening accounts with remote client identification without having to meet with the user offline. The guide has provisions for the electronic transfer of money and cryptocurrencies in Israel and abroad. According to the regulation, banks will establish an orderly policy that will make it possible to receive money if trading is conducted in compliance with all the rules. This rule will help clients who previously had difficulty depositing their profits with banks due to the risk of money laundering.
Shlomit Wagman, director of Israel’s Anti-Money Laundering and Terrorist Financing Authority, said the new AML guidance will help the country fight against the illegal use of cryptocurrencies, while also providing the industry with more support and legitimacy.
“The application of the rules represents real progress for the Israeli economy, the fintech industry and improved financial competition.”
The Israel Securities Authority and the Israel Capital Markets, Insurance and Savings Supervision Authority are reviewing applications from several cryptocurrency companies for licenses to comply with the new AML rules.
Israel is taking all measures to regulate cryptocurrencies to avoid their illegal use. In August, Israel’s Capital Markets, Insurance and Savings Authority began requiring insurance and investment companies to substantiate any Bitcoin-related investment in detail. In July, Israel’s Ministry of Finance published a bill requiring investors to report their cryptocurrency ownership to tax authorities.
