- These quantities are lower than Israel’s prior 2019 transaction restrictions.
- Violators might face fines of 15% to 25% of the money involved.
Citizens of Israel will be unable to utilize cash for transactions greater than $4,400, depending on the company they are dealing with, beginning Monday. Israel is increasing its hold over the country’s currency.
Beginning August 1, Israelis will be unable to pay for goods and services with cash if the total is more than 6,000 shekels ($1,760). When it comes to business payments, it is said that this provision is applicable to donations, loans, and wages.
Personal transactions above 15,000 shekels ($4,400) will also be forbidden for citizens. These quantities are lower than Israel’s prior 2019 transaction restrictions. Previously, a personal transaction could only be for 50,000 shekels ($14,660), whereas a company transaction could only be for 11,000 shekels ($3,220).
Charities, religious organizations, West Bank Palestinians, and immediate family members are excluded from the rule, but tourists are not. Additional steps are planned to prevent Israelis from keeping more than $58,660 in cash at home.
Strict Penalty Attached
Those who break the law will have to pay a heavy price. A fine of between 15 percent and 30 percent of the transaction’s value may be imposed on individuals participating in transactions that exceed the limit. Legal violations in personal transactions up to 25,000 shekels will result in a punishment starting at 10,000 shekels. Violators might face fines of 15% to 25% of the money involved if the transaction is substantial enough.
To combat money laundering, tax fraud, and terrorist funding, the Israel Tax Authority said the regulation is intended to decrease the usage of cash by Israelis. The new laws will encourage the use of digital payments and make it simpler for Israeli authorities to keep tabs on financial transactions. Crypto adoption might surge but the government is expected to track all activities.
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