Law for the Reduction of the Use of Cash, 5778-2018

In this Law –

"person who is not a dealer" – including a dealer acting otherwise than in the course of his business;

"Postal Bank" – the subsidiary as defined in the Postal Law; however, until the end of the day preceding the Determining Date within the meaning of sections 56 and 57(c) of the Postal Law (Amendment No. 11), 5772-2012, the definition "Postal Bank" shall be read as follows:

"'Postal Bank' – the company as defined in the Postal Law, in its provision of financial services on behalf of the subsidiary; for this purpose –

'the subsidiary' – as defined in section 88k(a) of the Postal Law;

'the Determining Date' – within the meaning of sections 56 and 57(c) of the Postal Law (Amendment No. 11), 5772-2012;

'the financial services' – as defined in the Postal Law.";

"holder of a licence to provide credit" – a holder of a licence to provide credit pursuant to section 12 of the Supervised Financial Services Law;

"holder of a licence to provide a service in a financial asset" – a holder of a licence to provide a service in a financial asset pursuant to section 12 of the Supervised Financial Services Law;

"holder of a licence to provide deposit and credit services" – a holder of a licence to provide deposit and credit services pursuant to section 25b of the Supervised Financial Services Law;

"supervised financial body" – any of the following:

"endorsement", "endorser", "endorsee" and "payee" – within their meaning in the Bills of Exchange Ordinance;

"loan" – any credit transaction as well as the discounting of a bill;

"Constitution Committee" – the Constitution, Law and Justice Committee of the Knesset;

"Anti-Money Laundering Law" – the Prohibition on Money Laundering Law, 5760-2000;

"Bank of Israel Law" – the Bank of Israel Law, 5770-2010;

"Banking (Licensing) Law" – the Banking (Licensing) Law, 5741-1981;

"Postal Law" – the Postal Law, 5746-1986;

"Privacy Protection Law" – the Privacy Protection Law, 5741-1981;

"Real Property Taxation Law" – the Real Property Taxation (Appreciation and Acquisition) Law, 5723-1963;

"Value Added Tax Law" – the Value Added Tax Law, 5736-1975;

"Penal Law" – the Penal Law, 5737-1977;

"Supervised Financial Services Law" – the Supervision of Financial Services (Regulated Financial Services) Law, 5776-2016;

"commencement date" – the date of commencement of this Law as provided in section 39(a);

"late commencement date" – the date of commencement of the provisions listed in section 39(b);

"cash" – banknotes and coins that are legal tender in Israel, as well as foreign currency;

"transaction price" – the consideration agreed upon by the parties to a transaction for the asset or service, including value added tax, purchase tax and excise duty, as well as incidental expenses of the transaction agreed upon with the seller of the asset or the provider of the service; for this purpose –

"foreign currency" – as defined in the Bank of Israel Law;

"sale" – including the conveyance for consideration of a right of ownership, a right of lease or any other right;

"non-profit organisation" – as defined in the Value Added Tax Law, excluding a public authority;

"the Administrator" – as defined in the Income Tax Ordinance [New Version];

"identity number" – any of the following, as the case may be:

"Supervisor of Banks" – the supervisor appointed pursuant to section 5(a) of the Banking Ordinance;

"real property" – as defined in the Value Added Tax Law;

"asset" – movable property, real property and rights, including intangible assets;

"dealer" – a person who sells an asset or provides a service in the course of his business, including a non-profit organisation;

"lawyer" – a person authorised to practise law pursuant to the provisions of Chapter V of the Bar Association Law, 5721-1961;

"transaction" – the sale or purchase of an asset, or the provision or receipt of a service;

"Banking Ordinance" – the Banking Ordinance, 1941;

"certified public accountant" – within the meaning of the Certified Public Accountants Law, 5715-1955;

"public authority" – an authority of the State, a local authority and any other body performing a public function by law;

"cheque" – within its meaning in section 73 of the Bills of Exchange Ordinance;

"service" – any act performed for consideration for another that is not a sale, excluding consideration given as wages;

"wages" – as defined in the Wage Protection Law, 5718-1958;

"banking corporation" – as defined in the Banking (Licensing) Law;

"tourist" – as defined in the Value Added Tax Law;

"cash payment" – an amount paid or given in cash, as the case may be, excluding the lower of the following:

"cheque payment" – an amount paid or given by means of a cheque, as the case may be.

The provisions of section 2 shall not apply –

A banking corporation, the Postal Bank or a holder of a licence to provide deposit and credit services shall not honour a cheque in respect of which one or more of the restrictions listed in the Second Schedule apply.

A violator to whom a notice of intent to charge has been delivered pursuant to the provisions of section 7 may submit his arguments, in writing, to the Administrator, regarding the intention to impose a financial penalty on him and regarding its amount, within 45 days of the date of delivery of the notice, and the Administrator may extend the said period by an additional period not exceeding 45 days; if the Administrator considers that circumstances exist that justify doing so, he may allow the violator to submit his arguments before him.

In the case of a repeat violation, an amount equal to the first financial penalty shall be added to the financial penalty prescribed for that violation; for this purpose, "repeat violation" – a violation of a provision of the provisions under this Law, as referred to in section 6, within two years of a previous violation of the same provision in respect of which a financial penalty was imposed on the violator.

The financial penalty shall be according to its updated amount on the date of delivery of the payment demand, and in respect of a violator who did not submit his arguments to the Administrator as referred to in section 8 – on the date of delivery of the notice of intent to charge; if an appeal was filed with a court pursuant to section 17 and payment of the financial penalty was stayed by the Administrator or the court – the financial penalty shall be according to its updated amount on the date of the decision on the appeal.

If a violator has not paid a financial penalty on time, linkage differentials and interest as defined in section 159a(a) of the Income Tax Ordinance [New Version] shall be added to the financial penalty for the period of arrears, until its payment.

A financial penalty shall be collected for the State Treasury, and the Tax (Collection) Ordinance shall apply to its collection.

For a single act that constitutes a violation of a provision of the provisions under this Law listed in section 6 and of a provision of the provisions under another law, no more than one financial penalty shall be imposed.