Israel: State Agency To Monitor Chareidi Gemachs To Prevent Money Laundering

7

Print Friendly, PDF & Email

shekOne of the priorities of monetary agencies in Western countries today is preventing money laundering, which includes compelling a greater use of digital funds, with the latter facilitating leaving a paper trail.

In Israel, the treasury is working in earnest to minimize money laundering and one new measure taken is monitoring of chareidi gemachs. The gemachs that exist in the chareidi community for many is the difference between making a family simcha or not, or getting though yomim tovim or other times of life with added expense. However, new government-imposed regulations and restrictions may compel some gemachs to shut down.

The Finance Ministry is pushing a bill that would result in the creation of a government agency that will oversee the operations of gemachs.

(YWN – Israel Desk, Jerusalem)


7 COMMENTS

  1. Unfortunately some gemachs are used to launder money. The government must enforce the law. It is likely that enforcing the law will take away the incentive of some people to fund gemachs because they will no longer be unable to hide their funds, but Israel should be a country where the rule of law is enforced.

  2. They should adopt a European model where all tax deductible contributions to mosdos and charitable organizations over a certain amount MUST be done via electronic or funds transfer (credit card, wire transfer or check in an electronic clearing house) and it would be a crime to transact multiple transfers just below that threshold. The benefits in terms of minimizing money laundering, tax avoidance and fraud would outweigh any minimal loss of donations.

  3. It is unfortunate that this is what it has come to.
    This is an unfortunate situation but it is necessary.
    Too many of inzereh menchen pay no heed to laws, rules and/or regulations. Their response to a rule or regulation is “SHTUYOT!”.

    I assisted Jewish Inmates in jail for nearly 30 years. Most were there for their lack of respect for the law. When it came to money all laws and rules were “SHTUYOT” to them.

    Rabosai! Teach your children than Rules, Regulations and Laws matter and they are to be followed, no matter who they think they are, because we are not above the laws of the land.

  4. This is good news for those that donate their hard earned money. We want it to be used for the ends we designated it not for shady junk mail.