Regulatory Alerts2023-02-26
Bank of Israel Circular C-06-2741: Amendments to Proper Conduct of Banking Business Directive No. 310 on Risk Management
The Bank of Israel issued Circular C-06-2741 to amend Proper Conduct of Banking Business Directive No. 310, requiring banking corporations and acquirers to exercise utmost caution regarding cryptographic assets due to associated prudential, cyber, and consumer protection risks. The amendments mandate that new product approval processes include compliance checks with relevant laws and explicit assessments of customer interest protection. Additionally, institutions must provide written notification to the Supervisor of Banks before commencing crypto-related activities, accompanied by detailed risk analyses and subject to defined supervisory examination timeframes.
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