This Guide, published by the Bank of Israel’s Oversight of Payment Systems, sets out the operational, technical, and regulatory requirements for participation in Israel’s supervised payment systems. The purpose is to promote open access, competition, and innovation, while preserving financial stability. It supports the objectives of the FATF Travel Rule and Wire Transfer Regulations by establishing a regulatory perimeter around all entities involved in fund transfer activities, including both domestic and cross-border transactions.

Key Payment Systems Under Oversight

The supervised systems include:

• ZAHAV: Israel’s RTGS (Real-Time Gross Settlement) system for large-value, immediate, and final transfers.

• MASAV Batch: Deferred credit and debit transfers between customer accounts.

• MASAV Fast Payments: Immediate credit transfers between retail accounts, similar in function to WTR-focused rapid remittance channels.

• SHVA Payment Card and ATM Systems: For card payments and cash withdrawals, with integrated clearing and settlement.

• EMV Protocol: Facilitates secure, interoperable card-based payments.

All systems ultimately reconcile their net positions via the ZAHAV system, ensuring a uniform settlement standard for WTR-related monitoring.

Licensing & Participation Structure

Access to payment systems requires an appropriate financial services licence issued by recognised Israeli authorities or foreign regulators from jurisdictions acknowledged by Israel (e.g. UK, US, EU). Entities exempt from licensing may only participate indirectly, with full representation in all operational, technical, and settlement layers—thereby preserving WTR-aligned accountability.

Each payment service provider must:

• Be licensed or exempt according to regulatory criteria.

• Be assigned a unique identification code (akin to a bank or BIC code).

• Choose a model of access (direct, indirect, connected, unconnected).

• Comply with governance and security standards, including the YUVAL cyber risk framework.

These steps directly align with WTR’s requirements for identifiable, verifiable sender/receiver information and system-level auditability.

Data Transmission & Traceability

All supervised systems require that participating entities transmit complete customer identification and transaction data. Systems like ZAHAV and MASAV Fast Payments enforce real-time data integrity, enabling compliance with WTR mandates for inclusion and transmission of originator and beneficiary data throughout the payment chain.

Indirect participants must be represented by direct participants for data handling, ensuring that WTR-required information is retained and accessible even when service providers operate via intermediaries.

Foreign Participant Access & WTR Controls

Foreign payment service providers may access Israeli payment systems if licensed in a recognised jurisdiction and if they provide comfort letters, declare operational readiness, and adhere to Israeli security and testing protocols. They are subject to similar obligations as domestic providers regarding transaction transparency and regulatory cooperation, reinforcing the cross-border WTR framework.

Such entities must also submit to system testing, integration audits, and provide compliance declarations before moving to production environments. Their access is conditional on satisfying technological, legal, and financial requirements—further embedding WTR principles across national borders.

Security, Oversight & Monitoring

All participants must comply with strict cyber and operational risk management standards, including annual certification through Israel’s National Cyber Directorate (YUVAL framework). These measures safeguard the integrity of payment data and support secure transmission of wire transfer information.

The Bank of Israel, through its Oversight of Payment Systems Division, monitors all entities for adherence to access and participation terms. It can require remedial actions or restrict access where systemic or AML/CFT risks are identified.

Conclusion: WTR Compliance Integration

The Access Guide establishes a tiered, transparent and enforceable framework for participation in Israel’s supervised payment systems. It directly supports the implementation of the Wire Transfer Regulations by ensuring that all fund transfers—whether domestic, retail, card-based, or cross-border—are conducted with full originator and beneficiary data, in secure and auditable environments. Through robust licensing, traceability protocols, and system-wide governance, the Guide facilitates the effective application of WTR in Israel’s evolving digital payments ecosystem.