Financial Crime World

Money Laundering and Terrorism Financing Threaten Israel’s Economy: Justice Minister

According to a new report from Israel’s top financial crimes authority, criminal activities, including money laundering and terrorist financing, comprised a significant portion of the economic landscape in 2021.

Criminal Activities in Israel

  • The authority documented 19% of cases related to money laundering on behalf of organized criminal groups in 2021.
  • 14.6% of cases were linked to financing terrorism.

Consequences on Israel’s Economy

“Money laundering and financial crimes threaten the very fabric of Israel’s economy.” - Justice Minister Gidon Sa’ar

International Connections

17.8% of documented criminal activities had international connections. One such case involved a security firm:

  1. Fraudulently extorted construction sites across the country.
  2. Used a complex web of subsidiaries to launder the proceeds.
  3. Eventually, the financial irregularities attracted the attention of the authorities.
  4. Israel’s police force dismantled the group.

Impact on Israel’s Arab Minority

  • Organized crime wave hits Israel hard.
  • Disproportionately affects approximately 20% of the population, the Arab minority.
  • Record year of organized crime-related incidents.
  • 128 Israeli Arab citizens died in 2021 and 65 such deaths by August 2022.
  • Addressing crime and violence within the Arab community is a top national priority.

Root Causes

  • The Aman Center, an Israeli NGO, criticizes Israeli policy makers for neglect of the Arab minority.
  • Severe poverty, unemployment, and rising criminality levels.

Palestinian Call for Peace

  • Palestinian journalist Hanin Majadli called on criminals in Israel to keep innocent people out of their disputes.

Organized Criminality Within Jewish Israeli Population

  • Israel’s former leading criminal figure in Tel Aviv, Yitzhak “Itzik” Abergil, was sentenced to three life terms.
  • Role in the deaths of three bystanders caught in the crossfire of a mob hit.

Fighting Financial Crimes

  • Israel continues its ongoing fight to stem the tide of financial crimes.