Anti-Money Laundering

In the past, "money laundering" was a term associated with criminal organizations. Today, the reality has changed entirely. Any businessperson, crypto investor, money service provider (currency exchange), or citizen depositing an unusual sum at a bank may find themselves under the magnifying glass of the Anti-Money Laundering Authority. Israeli law is among the strictest in the world. It imposes draconian reporting obligations and enables the state to confiscate (forfeit) property and funds on a massive scale, even before guilt has been proven. Banks freeze accounts out of fear of risk exposure, and "ordinary" tax offenses are now classified as "predicate offenses" that trigger money laundering sanctions. Without proper legal intervention, a law-abiding individual may lose all their assets and face lengthy imprisonment.

The Prohibition of Money Laundering Law (5760-2000) provides that anyone who conducts a transaction involving property derived from a criminal offense (a "predicate offense"), with the intent to conceal or disguise its origin, faces up to 10 years of imprisonment. Legal defense focuses on two fronts:

1. Against banks and regulators: Releasing frozen accounts, establishing Source of Funds documentation, and providing representation before the Committee for Imposing Financial Sanctions.

2. Against the police and prosecution: Fighting forfeiture (restoring seized property to its owner) and proving that the transactions were conducted in good faith and without intent to conceal the source of the funds ("absence of mens rea").

Our firm combines unique expertise in both fields. We understand the path money travels. We advise financial service providers (FSPs) vis-à-vis regulators and represent clients whose accounts have been blocked due to crypto activity or international transfers. Our experience enables us to negotiate with the prosecution for the release of seized assets and to prevent serious indictments, leveraging the most recent Supreme Court precedents.