meta_id 3338919

On July 14, 2026, the Banking Supervision Department published for public comment a draft update to Proper Banking Management Directive 411 concerning anti-money laundering (AML) and counter-terrorism financing (CTF) risk management related to payment services for virtual asset activities. The update clarifies requirements for the banking system regarding acceptance of funds derived from virtual currency activities, while supporting the expansion of payment services in this sector and maintaining financial system stability. The Banking Supervision Department developed the amendments using a risk-based approach informed by experience within the banking system and international AML/CTF standards. Key amendments include: updating the definition of virtual currency pathways and removing certain restrictions; establishing that banks cannot refuse virtual asset payment services solely because the activity source involves virtual currencies; requiring banks to develop policies examining transaction profiles, considering the virtual asset service provider's identity, virtual asset characteristics, customer profile, transaction volume and complexity; mandating risk-based examination of virtual currency pathways where necessary through independent review, customer documentation, or qualified external expertise; establishing policies for accepting funds from virtual asset issuance activities, with banks examining issuance characteristics and the jurisdiction where the virtual asset was issued; identifying risk-reducing and risk-increasing factors for transaction profiling, including service provider licensing status, unregulated provider activities, anonymity-enhancing cryptocurrencies, and transaction path obfuscation technologies; removing the previous 100,000 New Israeli Shekel annual threshold requirement; and requiring clear, accessible disclosure to customers regarding virtual asset payment service conditions. The amendments take effect six months from publication. The public comment period details and submission procedures are available on the Bank of Israel website.