Tel Aviv [Israel], Israel's Capital Markets Authority strengthened the management of money laundering and terrorist financing risks in financial services providers and adopted international rules in the supervision of virtual assets.

The new Directive imposes a condition on financial service providers that they will not provide services to a service recipient who does not hold a financial services provider license if the license holder considers that the activity requires obtaining an appropriate license.

In such cases, it will also be necessary to submit appropriate reports to the Capital Market Authority and Anti Money Laundering Authority.

The draft directive also states that a financial service provider may not take any action if it has reasonable grounds to fear that the action is related to money laundering and terrorist financing.

This directive is expected to implement for the first time in Israel the international standard for the transfer of information required in activities in virtual assets (travel regulations).

According to the standard, the provider of financial services in virtual assets will be required to promptly and securely transfer relevant information to the transfer recipient.

In this way, the anti-money laundering and terrorist financing regime applicable to those engaged in activities in virtual assets will be adjusted in accordance with advanced international standards and recommendations of the FATF (Financial Action Task Force) organization.