Oversight functions
Regulation
One of the core functions of payment systems oversight is regulation.
Regulation is carried out in the areas of stability and efficiency of the controlled payment systems. Among other things, it includes advancing and supporting legislative processes; establishing principles and standards for the operation of payment systems in various domains; reviewing international standards, including their adoption and adaptation; drafting supervisory directives for payment systems; regulating existing and new payment instruments in the market through agreements that define the rules for their use; regulating new areas of activity or emerging technologies in the payments market; advancing regulatory measures related to structural changes in the payments market; continuously mapping payment systems operating in the market; and declaring critical payment systems as controlled or designated controlled systems.
Assessment and Audit
The Assessment and Audit Unit within the Payment Systems Oversight Division is responsible for evaluating and auditing the stability, efficiency, and proper functioning of each supervised payment system and of the overall payments array.
Among other things, these responsibilities include: ongoing monitoring of system operations; assessing a payment system’s compliance with the Principles for Financial Market Infrastructures (PFMI), legal requirements, and supervisory directives; identifying and evaluating risks to payment systems and taking steps to mitigate them; advancing measures to address issues related to the stability, efficiency, and proper functioning of supervised systems; handling urgent matters identified through ongoing supervision; conducting audits of controlled payment systems; and carrying out enforcement actions.
In addition, the Assessment and Audit Unit is responsible for areas of expertise such as corporate governance, operational risk management (including business continuity), information security, and cyber protection, and performs all supervisory functions related to these topics.
strategy
Another key role of the Payment Systems Oversight Division is to define and promote a strategic vision for Israel’s payments market, to develop the market, and to manage international relations related to this field, in accordance with Responsibility E of the PFMI.
Among other things, this role includes: leading strategic projects in the payments domain; formulating measures to implement reforms and changes in the payments array and payment instruments to foster innovation and meet market needs; promoting efficient cross-border payments; coordinating with government entities to advance innovative and efficient payment solutions within the government; overseeing access to payment systems; managing relationships with potential market participants and guiding them through the access process; and maintaining platforms for dialogue and consultation with regulators and market participants in Israel’s payments ecosystem.