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The Jerusalem Post, Internet Business Article, July 10th, 2000:


"Using the banking system, Israel has become a green house for organized crime."

"Israel is a promised land for money launderers."

Bill to combat money laundering nearly ready

By Tal Muscal


JERUSALEM (July 10) - Legislation against money laundering will be brought soon before the Knesset, Tzipi Livni, chairwoman of the Knesset subcommittee on money laundering, said yesterday.

"Using the banking system, Israel has become a green house for organized crime," she said.

Livni acknowledged that "dirty money" has come into the country using legal means. "Depositing money is legal; the problem is that the money is from criminal actions and we must stop that," she added.

In December, Cmdr. Yossi Sedbon of the Israel Police warned of that the country was turning into an international center for money laundering. "Israel is a promised land for money launderers; it is easy to become a citizen. You need a Jewish mother, but if you don't have one, you can create one," he said.

Internal Security Ministry spokesman Moshe Debi stated that the Justice Ministry is preparing legislation to fight the phenomenon. "We are working together with the Justice Ministry, Bank of Israel, Israel Police, and the Customs Authority," he said. "As long as there is no legislation, we can't take action."

Subcommittee members and ministry representatives have attended UN-sponsored seminars and workshops designed to increase awareness among the law makers.

The anti-money laundering bill would make it an offense to conceal the origins of money earned through criminal acts. It sets up requirements for banks and other financial institutions to report suspicious transactions and would allow the government to establish a database from the data collected.

"In creating the proper type of legislation, we in the committee have attempted not to violate the citizen's right to privacy," said Livni. "The law does violate a certain amount of people's privacy, but we need a clear law against money laundering."

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