Israel’s Justice Ministry Reports Surge in Money Laundering and Organized Crime

The Justice Ministry of Israel has released its annual report on money laundering and terrorist financing for the year 2021. The report reveals a significant increase in both illegal activities in Israel.

Key Findings

Money laundering cases related to organized criminal groups accounted for 19% of all cases.
Terrorism financing cases represented 14.6% of the total cases.
Nearly 18% of criminal activity was connected to international organizations.

Minister’s Comments

Minister of Justice, Gidon Sa’ar, expressed concern over the increasing trend of money laundering and financial crime. He stated that these activities posed significant social risks and jeopardized the health of Israel’s economy. Sa’ar emphasized the need for advanced financial intelligence capabilities to counteract the increasingly sophisticated methods of criminal activity.

Notable Case

The ministry’s report includes a case involving a security firm that transformed into a criminal enterprise, extorting construction sites for non-existent services. The company’s owners blackmailed contractors and construction companies across the country, using their criminal reputations for leverage. They created a network of subsidiary firms to launder the proceeds of their extortion. Eventually, the group’s financial discrepancies led to their dismantling by the authorities.

Organized Crime Affecting Arab Community

The report comes after a year marked by a record tide of organized crime, which has disproportionately affected Israel’s Arab minority. By August 2022, 65 Arab citizens were killed in organized crime-related incidents, compared to 128 the previous year. The Ministry highlighted that addressing this escalating issue is a top priority.

Criticism and Calls for Action

However, civil society organizations like the Aman Center have accused the Israeli government of contributing to the issue through neglect and lack of investment in the Arab community. The organization stated that decades of disregard and apathy from the Israeli authorities have led to severe poverty, unemployment, and high criminality levels within the Arab minority. The government’s inaction, coupled with certain structural changes, has intensified the issue, resulting in a rising tide of criminality and violence within the Arab community.

Impact on Other Communities

It is essential to note that organized criminality has not only affected the Arab community. In the summer of 2022, Itzik Abergil, the leader of an ethnically Jewish and Israeli criminal group, was convicted of three life sentences for his role in the deaths of three bystanders caught in the crossfire of a mob hit intended for one of his adversaries. The impact of organized crime knows no ethnic or national boundaries and underscores the need for comprehensive action against these criminal activities in Israel.

Bullet points:

Israeli Justice Ministry reports surge in money laundering and organized crime.
Nearly 19% of cases related to money laundering by organized criminal groups.
14.6% of cases involved terrorism financing.
Minister of Justice expresses concern over financial crimes.
Notable case: Security firm transformed into a criminal enterprise that extorted money from construction sites.
65 Arab citizens killed in organized crime-related incidents in 2022, an increase from the previous year.
Organized crime disproportionately affects Israel’s Arab community.
Civil society organizations accuse Israeli government of contributing to the problem through neglect.
Ethnically Jewish and Israeli criminal group leader convicted of three life sentences for mob hit that killed three bystanders.