FIFA fined the Israeli Football Association (IFA) 150,000 Swiss francs ($190,700) on Thursday for "multiple breaches" of its anti-discrimination obligations.
A report by the disciplinary committee of world football's governing body found the IFA "failed to take meaningful action against Beitar Jerusalem" for "persistent and well-documented racist behaviour".
FIFA also said the IFA was issued with a warning and was ordered to display a "significant and highly visible banner" at its next three FIFA competition home matches, stating "Football Unites the World - No to Discrimination".
The IFA will have to invest one-third of the fine towards implementing a plan to "ensure action against discrimination and to prevent repeated incidents".
In October 2024, the Palestine Football Association reported allegations of discrimination by the IFA to FIFA, which initiated an investigation.
