Banking supervision directives of Israel

Banking supervision directives of Israel 

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Banking supervision directives of Israel

(A) The Governor of the Bank of Israel, according to his authority under section 28 of the Banking Law (Licensing) 1981, allows banks to allow their customers to perform transactions in their accounts
Certain banking through communication banking systems. However retrieval Information provided by customers, in respect of their accounts, is not a banking transaction subject to a permit as mentioned

(B) A bank may operate in this field only subject to the permit granted to it and in accordance with the aforesaid
In this instruction. An example of such a permit, in the appendix to the instruction.

(C) The specifications in this directive are uniform for all banks that provide their customers with services
Communications banking. A customer will usually be able, with the help of equipment at his disposal, to contact any One of the banks offering such services.

“Communications Banking” – Execution of transactions by the Bank’s customer using a computer installed
With him, the bank’s communication system and computer;

“Transaction in favor of a third party” – a monetary transfer (including securities) between the credit of an account of Better, and as a payment into his hands, as well as an opening, determination or modification of
Financial framework for future payment (example: credit certificates).

(A) Transactions of customers in banking in communications shall be carried out only in the system of the Bank or The banking group.

(B) The offering of banking services in communications through non-Bank and which systems
Also provide other services, subject to the prior consent of the Supervisor of Banks, which
Will examine the terms of engagement, security and other aspects of the involvement of an outside body

(A) The Bank’s management must assess the impact of banking banking on controls Organizations and ensure that the special risks arising from a direct approach of Customers of the Bank’s computer systems or of making banking transactions in communications, Indeed treated properly.

(B) All aspects of banking in the media shall be under the express responsibility of a member of the management the bank

5. (a) Customers

Execution of banking transactions in the media by portfolio managers is subject to explicit approval
In the specific permit received by the Bank from the Governor of the Bank of Israel.
(B) Level of service Customer service is defined in three service levels:
1) providing information only; )
2) Same as in addition to doing banking transactions between accounts of the same customer (including)
Transactions in securities and foreign currency and transfers to his accounts at another bank) and
Payment in a framework determined in advance for future payment;
3) Same as in addition to making transactions for the benefit of a third party. )
The first level of service does not require licensing. Additional service levels require a permit
Governor of the Bank of Israel.

Bank / customer relationship

1) The Bank must maintain an orderly system of procedures and written agreements with)
Customers.
2) The Bank’s management must establish clear rules regarding compensation / non-compensation of the customer or)
Bank in cases of errors and disruptions (including the definition of these).
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6. (a) End equipment

1) The service will be provided to customers who hold the following types of equipment:)
Or each of its coordinators; IBM-PC (a) PC
Macintosh (b) Personal PC (MF, Mini) (c) Other computers (D) Telephone device with the option to press sound.

2) A bank that offers customers banking services in communications must provide the service)
(At least in equipment of the type referred to in subsection (1)

(B) Communication

1) The bank must provide the service in an asynchronous protocol at each of the rates)
the following:
(A) 2,400 Baud
(B) 14,400 Baud.

2) A bank may charge customers who make a large number of engagements, or)
Third-level employees, or those connected via the big computer
From a personal computer, use a modem at a rate of 28,800 baud.

3) The Bank may in addition offer service at rates and other protocols. )
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7. (a) If more
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7. (a) If the banking banking system is part of a satisfactory commercial communications system
Other information services – this system must comply, subject to what is stated in section 3 (b), at least
In the same criteria required by this provision.

(B) The customer’s entry control into the system shall be carried out by means that ensure unique identification and verification Values ​​of the customer (including, as appropriate, certain employees of the customer), by
Passwords are changed and in accordance with accepted standards.

(C) The system shall maintain appropriate security procedures for protection against improper use and against
Attempts to scan the system to expose these measures.
Of all engagement operations with its customers and planned. (Log) (d) The Bank shall maintain a full listing
The full file will be saved for at least 6 months for inquiries

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8. (a) Payments in favor of a third party shall be made in one of the following two regimes:
1) to the benefit of beneficiaries defined in the “Beneficiaries File”, as stated in subsection (e) below,)
Unlimited in amount unless the customer or bank has set a ceiling for the amount;
2) Win other beneficiaries up to the ceilings defined below. )
The ceilings will apply both to a single payment and to the total payments to the credit of each beneficiary – within
One calendar month
(B) Ceilings
1) Payment to a bank account in Israel or to a corporation – NIS 10,000;)
2) Payment to a single beneficiary, specifying his name and identification number only – 5,000 NIS;)
3) Payment to a beneficiary’s credit abroad (of any kind) – equivalent to $ 2,000.)
(C) The above ceilings shall be updated, once a year (at the beginning of a calendar year) according to the increase in the index
Consumer prices or a change in the exchange rate of the dollar, respectively, during the year
That preceded.
(D) The management of the Bank may, with the approval of the Board of Directors, increase the ceilings in paragraph (b)
Above up to three times.
(E) Beneficiary file
Lists of pre-approved beneficiaries (in accordance with paragraph (a) (1) above) shall be managed)
By the bank in a mechanized manner.
2) Each record will include at least the details of the beneficiary to identify him and make the payment and can)
Which will also include a financial framework (for a single or cumulative credit). This framework can be
Denominated in shekels or any other currency.
3) The Bank will establish procedures for updating details in the beneficiaries’ file. The customer will be allowed)
Transmit updates to the bank in the media, but in any case – the authorization of
The updated record is subject to the personal approval of a signatory (or licensee)
Signature, as applicable) of the customer at the bank branch.
However – the validity of an order to revoke or reduce an authorization – will not be conditioned on approval
Personal as stated above.
4) The customer will be required periodically and not less than once every three months to confirm in writing)
(Personal) The list of beneficiaries in all its details, including the ceilings of the permit

The specifics included in such a list.

Bank of Israel Governor
Permit for branches
According to the Banking (Licensing) Law, 5741-1981
By virtue of authority under section 28 (a) of the Banking (Licensing) Law, 5741-1981
And after consulting the Licensing Committee, Harini hereby permits

XXXXXXX to the bank
Conduct business with its customers in facilities that are computers installed by customers,
Through a communication system between the bank and the customers.
The aforesaid communication system shall be subject to all the conditions set forth in the management instructions
Proper Banking No. 412 of the Supervisor of Banks and this permit is subject to the said conditions.
This permit includes / does not include * a service for portfolio managers as stated in the Banking Management Directive
Regulation No. 462 of the Supervisor of Banks.

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YYYYYYYYYY
Bank of Israel Governor
Jerusalem, [Date]

Source: http://www.boi.org.il/he/BankingSupervision/SupervisorsDirectives/DocLib5/412/412_3N.pdf

Banking supervision directives of Israel