Regulatory Alerts2022-05-09
Management of AML/CFT Risks in Virtual Currency Activities
The Banking Supervision Department of the Bank of Israel amended Proper Conduct of Banking Business Directive No. 411 to impose enhanced AML/CFT controls on banking corporations handling virtual currency transactions. Banks are required to conduct periodic risk assessments, establish specific policies for licensed and unlicensed service providers, and verify the source of funds for transactions exceeding NIS 100,000 annually. Additionally, institutions must prohibit services for non-compliant providers, disclose policies to customers, and report risks to the board of directors at least every six months.
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