Israel's hold on money is becoming more strict. Lawmakers have decided to ban cash payments to combat financial crimes. Cash will no longer be accepted for purchases over $4,400 or $1,760, depending on the business transaction by Israeli citizens starting Monday (August 1st). Citizens of Israel won't be allowed to pay cash for purchases worth more than 6,000 shekels ($1,760) in business transactions.

According to <a href="https://herzoglaw.co.il/en/news-and-insights/reduction-in-amounts-permitted-to-be-paid-in-cash-as-of-august-1-2022/#_ftn6" target="_blank" rel="nofollow noopener">Herzog Law</a>, this provision applies to loans, salaries, gifts, and other business-related payments. Additionally, there is a ban on making cash payments for personal transactions worth more than 15,000 shekels ($4,400). These sums represent a decrease from the transaction ceilings Israel imposed in 2019. The maximum amount for commercial transactions was 11,000 shekels ($3,220), while the maximum for personal transactions was 50,000 ($14,660).
<h2>Israel Tax Authority</h2>
Charities, specific religious institutions, Palestinians living in the West Bank, and family and close friends are exempt from the regulation, but tourists must abide by it. Future legislation is anticipated to prevent Israelis from keeping more than 200,000 shekels ($58,660) in cash at home.

Lawbreakers will be subject to harsh consequences. Depending on transaction magnitude, those who engage in business transactions in violation of the <a href="https://www.cryptoknowmics.com/news/cryptocom-ceo-kris-marszalek-denies-imposing-withdrawal-restrictions/" target="_blank" rel="noopener">restriction</a> may be subject to fines ranging from 15% to 30% of the value of the payment. A violation of the law in a personal transaction of up to 25,000 shekels carries a penalty of 10,000 shekels. If the transaction is more significant, the fee could range from 15% to 25%, depending on how much money is exchanged. According to the <a href="https://www.gov.il/en/departments/guides/law-guide-to-reducing-cash-use" target="_blank" rel="nofollow noopener">Israel Tax Authority</a>, the ban intends to lessen Israelis' usage of cash and combat criminality, such as money laundering, tax evasion, and financing for terrorism. The new regulations will encourage digital transfers and make it simpler for Israeli authorities to monitor financial activity.

Israel Will Ban Cash Payments Over $4,400 From 1st August

Israel Tax Authority is putting a ban on cash payments for purchases over $4,400 or $1,760, depending on the business transaction as of August 1st.

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Israel Will Ban Cash Payments Over $4,400 From 1st August

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