On March 11, the Central Bank of Israel released a draft regulation on the field of AML/CFT risk management, requiring banks to conduct individual scrutiny of crypto companies rather than outright refusing to provide payment services, potentially opening the country to crypto companies. Financial system.
The draft, published on the bank’s official website on Thursday, said banking institutions must conduct risk assessments and develop policies and procedures for virtual currency-related transfers. For licensed crypto companies or financial asset service providers, banks will be “required to review each case individually and not be allowed to issue a blanket rejection notice to the service provider.”
Banks will also be required to identify the source of funds used to purchase virtual currency and to track the flow of virtual currency “from the time of purchase until it is converted into fiat and deposited into the bank’s corporate account.” The proposal is open for comment, after which final guidelines will be developed.