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Financial Services Supervision Law (Regulated Financial Services), 5776-2016

חוק הפיקוח על שירותים פיננסיים (שירותים פיננסיים מוסדרים), תשע"ו-2016

Published: 2016-08-01Consolidated Hebrew text as of 2026-07-26 · Last amended 2026-07-22✓ Amendment status checked against the Knesset legislation record on 2026-09-17
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

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The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

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Chapter XVI: Commencement and Transitional Provisions

Commencement§

114.
(a)This Law, except for Section A of Chapter XVII, shall come into force on the 7th of Sivan 5777 (1 June 2017) (hereinafter – the commencement date).
(b)Notwithstanding the provisions of subsection (a), this Law in respect of a person whose occupation is the provision of a service in a financial asset, and also in respect of the provisions of sections 106, 110(1) and 111, shall come into force on the 18th of Sivan 5778 (1 June 2018) (hereinafter – the late commencement date).
(b1)Notwithstanding the provisions of subsections (a) and (b), section 18 shall come into force on the 27th of Iyar 5779 (1 June 2019).
(b2)(Repealed)
(c)The Minister, with the approval of the Finance Committee, may, by Order, postpone the dates referred to in subsection (a) or (b) if the Minister finds that the postponement is necessary for the purpose of preparing for the implementation of the provisions of this Law, and the Minister may postpone such dates in respect of all or some of the regulated occupations under this Law.
114a.§

(Repealed — תשפ״ב)

Transitional Provisions§

115.
(a)In this section –

"veteran operator" – any of the following, as the case may be:

(1)a person who was engaged, on the eve of the commencement date, in the provision of credit;
(2)a person who was engaged, on the eve of the late commencement date, in the provision of a service in a financial asset.
(a1)Notwithstanding the provisions of sections 12 and 25k, a veteran operator who, before the commencement date or the late commencement date, as the case may be, submitted an application for a licence for the provision of credit, an application for a licence for the provision of a service in a financial asset under section 17, and received from the Supervisor confirmation of the submission of such an application, may continue in his occupation even though he does not hold such a licence, as long as the Supervisor has not issued a decision on his application; the provisions of this Law applicable to a financial service provider shall apply to such an operator, during the period from the commencement date or from the late commencement date, as the case may be, until the date of the Supervisor's decision on his application, as if he were a licence holder, all as the case may be and with the necessary modifications.
(b)A person who, on the eve of the commencement date or the late commencement date, held means of control in a veteran operator at a rate requiring a permit for an interested party under section 26, and the veteran operator received a licence under this Law or the conditions set out in subsection (a1) apply to the veteran operator, shall be deemed to hold a permit under section 26; nothing in the provisions of this subsection –
(1)shall derogate from the Supervisor's power to revoke a permit under section 28, and to require, for the purpose of exercising that power, any document needed to examine whether the conditions for revoking the permit are met;
(2)shall exempt such holder from the obligation to obtain a permit from the Supervisor under section 26, if, after the commencement date, the holder acquires additional means of control in a financial service provider, after which the holder holds means of control at a rate requiring such a permit.
(c)A person who, on the eve of the commencement date or the late commencement date, served as an office holder in a veteran operator, may continue to serve as an office holder in that veteran operator if the operator received a licence under this Law or the conditions set out in subsection (a1) apply to the operator; nothing in the provisions of this subsection shall derogate from the Supervisor's power to direct the termination of the tenure of an office holder under section 32, and to require, for the purpose of exercising that power, any document needed to examine whether the conditions for directing the termination of tenure are met.
(d)A currency service provider within the meaning of section 11c of the Prohibition of Money Laundering Law, as worded on the eve of the late commencement date, who violated, before the late commencement date, a provision of the Prohibition of Money Laundering Law, as set out in section 14 of that Law, shall continue to be subject to the provisions of Chapter V of that Law.
(e)Where an offence under section 11l of the Prohibition of Money Laundering Law was committed before the late commencement date, the repeal of that section under section 111(4) of this Law shall not be regarded as the repeal of the prohibition thereon for the purposes of section 4 of the Penal Law, 5737-1977.

Transitional Provision in respect of the First Term of Office of a Public Member of the Committee§

116.

Notwithstanding the provisions of section 8(a), the term of office of the public members of the Committee who are first appointed after the commencement of this Law shall be two years from the date of their appointment.

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Chapter XVII: Temporary Provisions

Section A: Powers to Restrict Use of Premises – Temporary Provision from the Date of Publication until the Commencement Date

Temporary Provision from the Date of Publication until the Commencement Date§
117.
(a)In this Section –

"Restriction of Use of Premises Law" – the Law for the Restriction of the Use of Premises for the Prevention of the Commission of Offences, 5765-2005;

"Criminal Procedure Law" – the Criminal Procedure Law [Consolidated Version], 5742-1982;

"Business Licensing Law" – the Business Licensing Law, 5728-1968;

"the Administrator" – the Director of the Tax Authority as defined in section 1 of the Income Tax Ordinance [New Version] or a person authorised by the Director for this purpose;

"the Registry" and "the Registrar" – as their meaning in Chapter IV-A of the Prohibition of Money Laundering Law;

"administrative restriction order" – an Order issued under section 118;

"judicial restriction order" – an Order issued under section 119;

"Head of the Prosecutions Unit" – as defined in section 60(a) of the Criminal Procedure Law;

"prosecutor" – as its meaning in section 12 of the Criminal Procedure Law.

(b)During the period from the date of publication of this Law until the commencement date, the Administrator of the Tax Authority as defined in the Income Tax Ordinance [New Version] or a person authorised by the Administrator for this purpose (in this Chapter – the Administrator) and the court shall have the powers set out in this Section.
Administrative Order for the Restriction of Use of Premises for the Prevention of Serious Tax Offences§
118.
(a)Where the Administrator has reasonable grounds to believe that premises in which a currency service provider registered in the Registry conducts its business are being used systematically for the commission of one of the offences listed below, and that the currency service provider is aware of this, and the Administrator has reasonable grounds for concern that the premises will continue to be used for the commission of such an offence unless the use of the premises is restricted immediately, the Administrator may, after consulting with the Registrar, order in writing the restriction of use of the premises:
(1)an offence under section 220 of the Income Tax Ordinance [New Version];
(2)an offence under section 117(b) or (b1) of the Value Added Tax Law, 5736-1975;
(3)an offence under section 98(c2) of the Real Property Taxation Law (Appreciation and Acquisition), 5723-1963;
(4)an offence under section 211(a1) of the Customs Ordinance.
(b)When the Administrator is about to issue an administrative restriction order, the Administrator shall consider, among other things, previous offences committed at the premises, the knowledge of the owner or occupier of the premises of the commission of an offence at the premises or of the intention to commit an offence at the premises, and the degree of harm that would be caused to the owner or occupier of the premises by the issuance of the order.
(c)Notwithstanding the provisions of subsection (a), if the Administrator finds that issuing an administrative restriction order is required without delay, the Administrator may issue it without consulting with the Registrar, provided that the Administrator notifies the Registrar as soon as possible thereafter of the issuance of the order.
(d)An order under this section shall remain in force for the period specified therein, and the Administrator may extend it for additional periods, provided that the total of all periods does not exceed 30 days.
(e)A person who considers himself harmed by an administrative restriction order may petition the Magistrate's Court for its cancellation or for the modification of its conditions; the court may cancel the order, modify its conditions or confirm it; a decision of the Magistrate's Court may be appealed to the District Court.
(f)The provisions of sections 3(c) and 4 of the Restriction of Use of Premises Law shall apply to an administrative restriction order.
(g)Where an administrative restriction order has been issued, a new administrative restriction order shall not be issued within one year from the date of the expiry of the previous order, except with the approval of the Head of the Prosecutions Unit, after the Head of the Prosecutions Unit is satisfied that the issuance of a new order is justified by reason of a material change in circumstances.
Judicial Order for the Restriction of Use of Premises for the Prevention of Serious Tax Offences§
119.
(a)The Magistrate's Court may, at the request of a prosecutor, issue a judicial restriction order, where the conditions set out in section 118(a) are met.
(b)A judicial restriction order shall remain in force for the period specified therein, which shall not exceed 90 days; the court may extend the validity of the order for additional periods not exceeding 90 days each, if the court is satisfied that the restriction of the use of the premises is essential for the prevention of the continued commission of the offence for which the order was issued, and the court may repeat such an order from time to time if so satisfied and having regard, among other things, to the manner in which the investigation into the offence for which the order was issued is progressing.
(c)When the court is about to issue a judicial restriction order or to direct its extension, the court shall consider, among other things, previous offences committed at the premises, the knowledge of the owner or occupier of the premises of the commission of an offence at the premises or of the intention to commit an offence at the premises, and the degree of harm that would be caused to the owner or occupier of the premises by the issuance of the order.
(d)Notice of an application for the issuance of a judicial restriction order shall be posted at the premises to which the application relates and served on the owner of the premises and on the occupier thereof, if they can be located with reasonable diligence in the circumstances of the matter; the court shall not issue such an order unless it has given the owner of the premises or the occupier thereof, if they are known, an opportunity to state their arguments.
(e)A judicial restriction order shall specify conditions, restrictions or prohibitions on the use of the premises, including the closure of the premises for the period specified in the order, all to an extent not exceeding what is required in the circumstances of the matter in order to prevent the continued commission of an offence at the premises.
(f)A copy of a judicial restriction order shall be posted at the premises to which it applies and served on the owner of the premises and on the occupier thereof, if they can be located with reasonable diligence in the circumstances of the matter.
(g)A court that has issued a judicial restriction order may modify the conditions of the order or cancel it at the request of a prosecutor or at the request of a person who considers himself harmed by the order and who was not invited to state his arguments.
(h)The court may reconsider a judicial restriction order that it has issued if the court considers that this is justified by reason of changed circumstances or new facts that came to light after the issuance of the order.
(i)A prosecutor or a person who considers himself harmed by a judicial restriction order may appeal the decision of the court to a District Court, and the appeal shall be heard by a single judge.
(j)The provisions of this Law in respect of a judicial restriction order shall also apply in respect of the extension of a judicial restriction order.
Administrative Order to Restrict Use of Premises due to Engagement without Registration§
120.
(a)Where the Administrator has reasonable grounds to presume that a person is engaged in the provision of currency services at certain premises without being registered in the registry, the Administrator may, after consulting with the Registrar, order in writing the restriction of use of those premises.
(b)Notwithstanding the provisions of subsection (a), where the Administrator finds that the issuance of an Order pursuant to that subsection is required without delay, the Administrator may issue it without having consulted with the Registrar, provided that the Administrator shall notify the Registrar as soon as possible thereafter of the issuance of the Order.
(c)The provisions of sections 21 and 22 of the Business Licensing Law shall apply to an Order pursuant to subsection (a), with the necessary modifications.
Court's Power to Restrict Use of Premises due to Engagement without Registration§
121.

Where an indictment has been filed for an offence under section 11l(a)(1) of the Anti-Money Laundering Law or a person has been convicted of such an offence, the court shall have the power to order as set out in sections 16 or 17 of the Business Licensing Law, with the necessary modifications.

Taking Measures to Execute an Order and Use of Force§
122.

Where the provisions of an Order issued pursuant to this Section have not been complied with, the Administrator, or a person authorised to do so by the court, may take any reasonable measure necessary for the purpose of executing the Order, and may receive the assistance of a police officer for the purpose of using reasonable force necessary for the execution of the Order.

Power of Seizure§
123.

Where a suspicion arises of the commission of an offence as referred to in section 118(a) or an offence under section 11l(a)(1) of the Anti-Money Laundering Law, the Administrator may seize an object, including money, connected to the offence; the provisions of sections 32 and 39 of the Criminal Procedure Ordinance (Arrest and Search) [New Version], 5729-1969 shall apply to such a seizure, with the necessary modifications.

Transfer of Information to the Administrator§
124.

Notwithstanding the provisions of section 31a of the Anti-Money Laundering Law, the Registrar may disclose information or show a document to the Administrator for the purpose of exercising the powers conferred upon the Administrator pursuant to this Section and to the extent required therefor.

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Section B: Powers to Restrict Use of Premises – Temporary Provision from the Commencement Date

Temporary Provision from the Commencement Date§
125.
(a)During the period from the commencement date until the end of three years from the date of publication of this Law, the Administrator as defined in section 117 and the court shall have the powers set out in Section A and the provisions of that Section shall apply, with the necessary modifications and with the following modifications:
(1)everywhere, instead of "the Registrar" read "the Registrar or the Supervisor, as the case may be";
(2)the powers under sections 118 and 119 shall be vested in the Administrator and the court also in respect of premises in which the business of a holder of a basic licence to provide a financial asset service or a holder of a basic licence to provide credit is conducted and in which the matters referred to in those sections obtain;
(3)the powers under sections 120 and 121 shall be vested in the Administrator and the court also in respect of premises in which a person is engaged in the provision of a financial asset service or in the provision of credit without a licence;
(4)the power under section 123 shall be vested in the Administrator also where a suspicion arises of the commission of an offence under section 94(a)(1) or (2);
(5)the provisions of section 124 shall apply notwithstanding the provisions of section 96.
(b)The Minister, with the consent of the Minister of Justice and with the approval of the Finance Committee of the Knesset, may, by Order, extend the period referred to in subsection (a), provided that it shall end no later than the end of five years from the date of publication of this Law.
Reporting to the Knesset§
126.

The Administrator as defined in section 117 shall report to the Finance Committee of the Knesset annually from the date of publication of this Law until the end of the period referred to in section 125 on actions taken in accordance with the provisions of this Chapter.

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