The Knesset plenum on Monday, 25 Adar, approved a second and third reading of a bill to reduce the use of cash, making it law, ‘Chareidim10’ reported.
The bill, based on the recommendations of the Locker Commission to examine the reduction of the use of cash, states that over certain amounts, the parties will be prohibited from receiving and receiving payment in cash, in a wide range of financial transactions.
The Locker Commission believed that open checks had characteristics similar to their cash, and therefore their use should be limited.
The restrictions on the use of cash will take effect within nine months on 1 January 2019 and the restrictions on checks six months later on 1 July 2019. In the first 9 months of the arrangement, no financial sanction or fine will be levied on first-time violators, in order to allow the public an adjustment period.
There will be a number of restrictions on the use of cash:
Use of cash in transactions: It is proposed to stipulate that in any transaction valued at more than NIS 11,000 (if it is a business deal) or NIS 50,000 (private transaction), the cash payment will be prohibited even if the payment in cash is only part of the amount.
Use of cash as a wage, contribution, gift or loan: any payment of a wage, donation, gift or loan; worth more than NIS 11,000 (if both parties do not have a family relationship) or NIS 50,000 (if both sides have family ties), Cash payment will be prohibited even only part of the cash amount.
Use of cash in transactions: It is proposed to stipulate that in any transaction valued at more than NIS 11,000 (in the case of a business deal) or NIS 50,000 (if it is private transaction), the payment will be prohibited in cash even if the cash payment is only part of the amount.
Restrictions on the use of checks: It is forbidden to give an open check or a third-party check left open and signed on the rear. It is further proposed to stipulate that the bank will not be permitted to repay a check without the name of the payee listed on it (“open check”) or a check that exceeds NIS 10,000 if it has been passed more than once (third-party) or if it does not specify the names of the party and the identity number of the party.
Punishment: According to the bill, a dealer who violates the restrictions on cash or checks will be subject to financial sanctions, and those who do not deal with such restrictions will be subject to criminal penalties (with the intention of making them administrative fines). In order to enable the enforcement of the proposed restrictions, it is proposed to establish an array of supervisors who will have various powers of supervision and enforcement.
“In this context, the Locker Commission believed that open checks and third-party checks had similar characteristics as cash, so their use should be limited.”
Clearly, this is being done to limit the use of paper-based currency for a means of payment, seeking to promote the use of electronic means of payment. The goal being to limit money laundering, financing terrorism, and other various offenses.
It was feared this would destroy the gemachs infrastructure, but MK Moshe Gafne, chairman of the Knesset Finance Committee, has found a way the gemachs would not be harmed. Gafne managed to have gemachs included in the exemption given to banks and financial institutions. In a compromise move, Gafne agreed for gemachs, the exemption will be for two years. He initially wanted a blanket exemption but could not push it through, hoping in two years, he will be able to obtain an extension.
(YWN Israel Desk – Jerusalem)
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One Response
This mad rush to a digital world is ill advised. Until the very, very serious problems of cyber security are being successfully dealt with, there are just too many things that will go wrong. And that is just at the technical level. There is still the human level. It is well know that all major cyber attacks or thefts had a major element of “social engineering.” That means that there was information from someone on the inside. This can come about by trickery, deceit, intimidation or bribery. People are manipulate all the time.
Let us imagine that all money is now digital and there is an EMP attack that wipes every hard drive in the country. What then? No money, no records and no economy! Even if there were hard copy records of everything, how long would it take to restart the economy? A week, a month, a year???
This is truly foolishness of the ultimate degree.