The regulation is designed to prevent criminal money laundering.
The cabinet today approved a bill for supervision of non-institutional financial services proposed by Minister of Finance Moshe Kahlon.
In its first stage, the bill regulates the services provided by currency changers. In the coming months, regulation will be extended to include person-to-person (P2P) financing companies operating on the Internet and providers of minimal banking services, such as benefit societies. In addition to increasing competition in the credit market, the regulation is designed to block the main money laundering channel for criminal elements: private loans.
Kahlon said, "People deserve real competition, which will lower the price of credit in Israel. At the same time, we are making sure that their money is in good and safe hands. Together with the recommendations by the Strum committee, which are entering the final stage of preparation, and the laws that have already been enacted by the Knesset, this is major progress towards generating true competition in the sector."
Published by Globes [online], Israel business news - www.globes-online.com - on November 1, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015
Moshe Kahlon