Bethel Finance news:
Governor of the Bank of Israel Prof. Stanley Fischer today tightened the reporting rules announced in January. Bank officials said that the changes were intended to close loopholes discovered since the new rules came into effect.
In January, the Bank of Israel ordered the banks to report all foreign currency swap deals and makam and treasury bills of more than $10 million made in one day by foreign residents.
The new directive extends this reporting requirement to shekel-foreign currency options and repo deals in treasury bills and makams. The Bank of Israel also extended the definition of swap deals to include swaps of foreign currency options, even if they are not actually called swaps.
The Bank of Israel expanded the list of institutions that must file the reports from banks, members of the Tel Aviv Stock Exchange (TASE), and anyone buying or selling foreign currency for a third part and who has an account at a bank or TASE member to their affiliated companies.
The Bank of Israel found that international financial institutions with accounts at Israeli banks, and were therefore required to file reports, could avoid the requirement by carrying out foreign currency transactions by foreign affiliated companies that had no bank account in Israel, and the reporting requirement therefore did not apply. The new rule requires subsidiaries and affiliates to file the reports.
The changes will come into effect on July 1
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