Israel’s Shadow Economy: Money Laundering, Terrorist Financing, and Organized Crime Threaten Society
Israel’s financial crime landscape continues to be a significant concern, with money laundering and terrorist financing accounting for a substantial portion of documented cases. According to the latest report published by the Israeli Police and the Ministry of Justice:
Key Findings
- Money laundering on behalf of organized criminal groups represented 19% of all cases.
- Terrorist financing cases accounted for 14.6%.
- The largest portion (17.8%) of documented criminal activities was associated with international organizations.
Concerns and Implications
Justice Minister Gidon Sa’ar expressed deep concern over the social implications of these criminal activities, stating:
“Money laundering and financial crime are illegal phenomena that pose deep social consequences and risk the integrity of Israel’s economy.”
He further emphasized the importance of high-quality and accurate financial intelligence in a world where money laundering and terrorist financing techniques are becoming increasingly sophisticated.
Case Studies
One notable case involved a “security firm” that transformed into a criminal outfit:
- Extorted construction sites for non-existent services
- Utilized a web of subsidiary companies to launder proceeds
Affecting the Arab Minority
Despite efforts to combat financial crime, organized crime has disproportionately affected Israel’s Arab minority, accounting for about a fifth of the country’s population:
- 128 Arab citizens killed in organized crime-related incidents in 2021
- 65 killed in 2022 by August
Neglect and Perpetuation of the Problem?
The Aman Center, an NGO tracking violence and crime in Israeli Arab communities, accuses Israeli policy makers of a neglectful policy leading to severe poverty, unemployment, and criminality levels amongst the Arab minority.
Criminality Among the Jewish Population
Organized crime is not confined to the Arab minority. For example, the leader of a Jewish criminal group was given three life sentences for deaths of bystanders killed during a gangland shooting attempt.
An Appeal to the Criminal Elements
As Israel grapples with these complex and deep-rooted challenges, journalist Hanin Majadli made a direct appeal to organized crime groups and independent criminals in an op-ed in Haaretz:
“Women, children, and innocent bystanders are off-limits.”
This appeal comes as no easy solution, and Israel’s society is faced with the need to find effective methods to combat the illegal activities of money laundering, terrorist financing, and organized crime.