Client updates / Regulation

Following an extensive public consultation process, a final report on the use of AI in the financial sector was published last week. The report was prepared by a committee comprising representatives of the Ministry of Justice, the Ministry of Finance, the Competition Authority, the Israel Securities Authority, the Capital Market, Insurance and Savings Authority, and the Bank of Israel.

On December 30, 2025, the Supervisor of Banks published Directive 412, aimed at instructing banking corporations on providing services to customers subject to international sanctions.

2025 will be remembered as the year financial regulation succeeded in catching up with the pace of technological innovation, progressing from regulatory uncertainty to a clear framework encompassing many aspects of financial activity and suited to the modern era.

The European Commission recently published the Digital Omnibus, aimed at simplifying data regulation within the European Union by amending key legislation governing digital data. In this update, we summarize the proposal’s key aspects.

In 2025, several significant changes took place in the international trade arena that directly impacted Israeli companies operating in global and domestic markets. For Israeli society, 2025 underscored the need to quickly adapt to changing rules, including trade becoming a tool for political and economic leverage.

2025 marked a major regulatory turning point in the fields of artificial intelligence (AI) and privacy protection. In Israel, Amendment 13 to the Privacy Protection Law forced Israeli companies to make significant changes in their routine operations and granted regulatory authorities unprecedented enforcement powers.

The Israel Securities Authority published a new staff position recently on the regulation of advertising in digital space (including on social networks), focusing on advertising relating to mutual funds. The staff position seeks to bridge the gap between the law and the dynamic reality in today’s digital age, and focuses on regulating ongoing online activities and activities with external parties.

The Israeli Money Laundering and Terrorist Financing Prohibition Authority (IMPA) published a document recently to raise awareness of the new challenges abuses of Generative AI and Deepfake pose to the financial sector. The document reviews the potential risks of use of these technologies, presents case studies from Israel and around the world, discusses emerging threats, and provides a list of “red flags” to help identify suspicious activities.

On October 19, 2025, the Competition Commissioner published her detailed position regarding the proposed anti-dumping levy on imports of aluminum profiles from China. This position expresses strong opposition to the recommendations of the Commissioner of Trade Levies to impose high anti-dumping levies on aluminum imports from China.

Starting January 1, 2026, NGOs and PBCs under Section 46 must report all donations through the Israel Tax Authority’s digital system to enhance transparency and prevent fraud. Compliance will be mandatory to maintain Section 46 approval.

Amendment 13 to the Israeli Privacy Protection Law significantly strengthens the PPA’s enforcement powers, requiring insurance agencies to ensure strict compliance in handling personal and sensitive data. Agencies must implement robust data security, transparency, and control measures to avoid substantial fines and regulatory sanctions.

The United States President recently announced the imposition of new 25% to 100% tariffs on pharmaceuticals, heavy-duty trucks, upholstered furniture, and kitchen and bathroom cabinets. The move is rocking markets and is likely to impact shipping costs, the furniture industry, and trade relations with various trading partners. It could also affect Israeli companies in various sectors.

On the eve of Rosh Hashanah, a joint task force from the Bank of Israel, the Ministry of Finance, and the Israel Securities Authority published an interim report for public comments, proposing a major reform in the way financial institutions (mainly banks, TASE members, and other players) are paid for securities services and investment advice.

Prediction markets have experienced rapid growth in recent years, thanks to the emergence of platforms attracting millions of users, such as Kalshi and Polymarket. These platforms have proven successful in predicting the outcomes of diverse events.

A significant development occurred last week at the interface between artificial intelligence and intellectual property following the settlement agreement reached by Anthropic in the class action lawsuit filed against it with the US District Court for the Northern District of California.

The US Federal Court of Appeals ruled recently that most of the tariffs imposed by US President Donald Trump as part of the trade wars are unlawful. However, the court decided that, for the time being, these tariffs will remain in effect. This is a landmark decision with potentially wide-ranging implications for the US and global economies, as well as for the balance of powers within the US federal government.

The Israeli Corporations Authority in the Ministry of Justice recently announced a significant expansion of its company extract service. This development marks an important change in the corporate landscape, substantially improving access to and transparency of comprehensive and material information regarding companies registered in Israel.

In May, the Ministry of Economy imposed a temporary guarantee on aluminum imports from China. As a result, Israeli aluminum importers have already reduced their orders from China by 50%. Simultaneously, access to the Turkish market has been almost entirely blocked for Israeli buyers.

Israel has hundreds of wineries, many of which are boutique wineries that opened and operated without any significant regulation over the years. Now, following the enactment of new regulations in early 2025 to regulate the wine market and transfer responsibilities over alcoholic beverages to the Ministry of Health, these wineries must begin the process of […]

Amendment 13, which significantly updates privacy laws in Israel, has come into effect! If you still don’t know what to do to comply with the requirements, we’ve prepared a guide to help you address the main issues (not all of them) right now! In this guide, you can find simple tips to implement in your organization to improve compliance with Israeli privacy law requirements.