The Knesset's Finance Committee, headed by MK Alex Kushner, approved The Ministry of Finance and the ISA's proposal that will allow a temporary Israeli license exemption for global fintech companies that provide advanced payment services.
This is part of the ISA's activity of increasing the competition in the financial market as well as supplying advanced financial services to the Israeli consumer. Companies eligible for the Full Passport are those who incorporated and licensed for payment services in the United States, the European Union, or the United Kingdom. An additional requirement is that all activity in Israel must be supervised by the foreign Money Laundering and Terror Financing Prohibition Authority.
This is another important step the ISA is taking to integrate financial innovation and increase the financial competition in Israel as part of the Open Financial Reform.
The exemption for the eligible companies is given for a year and a half, from now until January 2024.
During this time the eligible companies will be able to provide advanced payment services for the benefit of the Israeli consumer. The ISA will continue to promote the Regulation of Payment Services law to advance regulations in Israel.
For further inquiry, please contact:
Orit Shraiber, Adv. – orits@isa.gov.il
Avital Krupnik, Adv. – avitalk@isa.gov.il