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Sanctions:
There are restrictions by Israel of movement within the Palestinian
territories and of goods moving in and out.
The Arab League (comprising 22 Arab member states) has
boycotted Israel in a systematic effort to isolate Israel
economically in support of the Palestinians.
There are three tiers to the boycott. The primary boycott prohibits
the importation of Israeli-origin goods and services into boycotting
countries. The secondary boycott prohibits individuals, as well as
private and public sector firms and organizations, in member
countries from engaging in business with any entity that does
business in Israel. The Arab League maintains a blacklist of such
firms. The tertiary boycott prohibits any
entity in a member country from doing business with a company or
individual that has business dealings with U.S. or other firms on
the Arab League blacklist.
The implementation of the boycott has varied over time among
member states.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2012:
Israel is not regarded as a regional financial center. It primarily
conducts financial activity with the markets of the United States
and Europe, and to a lesser extent with the Far East. Criminal
groups in Israel, either home-grown or with ties to the former
Soviet Union, United States, and European Union often utilize a
maze of offshore shell companies and bearer shares to obscure
beneficial owners. Law enforcement continues to focus on human
trafficking and public corruption.
Israel’s illicit drug trade is regionally focused, with Israel as more
of a transit country than a stand-alone significant market. The
authorities continue to be concerned with illegal pharmaceutical
sales, retail businesses which are suspected money-laundering
enterprises, and corruption accusations against public officials.
Bilateral cooperation between United States and Israeli law
enforcement authorities is significant, including joint repatriations,
training exercises and sharing of information where relevant.
For additional information focusing on terrorist financing, please
refer to the Department of State’s Country Reports on Terrorism,
which can be found here: http://www.state.gov/j/ct/rls/crt/
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: NO
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
KYC covered entities: Banking corporations, credit card
companies, trust companies, stock exchange members, portfolio
managers, and the Postal Bank
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 27,922 (January 1 -
October 12, 2011)
Number of CTRs received and time frame: 922,583 (January 1 -
October 12, 2011)
STR covered entities: Banking corporations, credit card
companies, trust companies, members of the Tel Aviv Stock
Exchange, portfolio managers, insurers and insurance agents,
provident funds and the companies who manage them, providers
of currency services, money services businesses and the Postal
Bank
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: 52 from January - August 2011
Convictions: 12 from January - August 2011
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Israel has observer status with the Committee of Experts on the
Evaluation of Anti-Money Laundering Measures and the Financing
of Terrorism (MONEYVAL), a Financial Action Task Force (FATF)-
style regional body. Its most recent mutual evaluation can be
found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Israel_en.asp
Enforcement and implementation issues and comments:
Israel’s “right of return” laws for citizenship have meant that crime
figures can, and have continued to, operate in their home
countries while having easy access into and out of Israel. Israeli
citizenship for those “making aliyah” does not require strong ties
to Israel such as proof of continuous residency. Therefore it is not
uncommon for some crime figures suspected of money laundering
to hold passports in a home country, a third country for business,
and Israel, without necessarily having established ties here.
U.S. law enforcement has a robust relationship with the Israel Tax
Authority’s (ITA) Anti Drug and Money Laundering Unit. U.S.
customs authorities and the ITA routinely coordinate to target illicit
finance and bulk cash smuggling between the two countries. In
2011, the Israel Money Laundering and Terror Financing
Prohibition Authority signed an MOU with the U.S.’s Financial
Crimes Enforcement Network to further cooperation on money
laundering and terrorist financing issues. In addition, U.S. and
Israeli law enforcement officials cooperate on extradition requests
for individuals accused of crimes such as money laundering. For
example, Itzhak Abergil, a U.S.-designated Consolidated Priority
Organization Target (CPOT), and several other Israeli nationals
were extradited to the United States in 2011 where they now face
a host of charges including money laundering and drug trafficking.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Israel is not a major narcotics producing or trafficking country, but
has a significant domestic demand for illegal drugs. Drug offenses
linked to other crimes such as human trafficking, illegal labor and
money laundering continue to be issues for law enforcement; a
growing youth population is a concern for future drug use. Money
laundering legislation and scrutiny of money laundering has
increased significantly in recent years, with a focus on drug
money and its ties to terror financing and human trafficking. In
addition to young people, members of minority groups and an
increasing number of illegal immigrants, particularly from Africa,
are targets for drug trafficking investigations. Many Israelis hold
multiple passports, technically giving them an advantage in drug
smuggling and trafficking. Abuse of cannabis, hard drugs, hagigat
(a qat derivative) and illegal prescription medications continues to
be a problem in Israel. In addition, yaba, a
caffeine/methamphetamine pill associated with Thailand is abused
particularly by third-country national laborers and synthetic
cannabinoids, which are not illegal in Israel, are a growing
concern for law enforcement officials. Medical marijuana is legal in
Israel, butproduction and distribution are tightly controlled.
From January thru September 2011, Israeli enforcement seized:
• Marijuana - 639 kg (mostly from the Egyptian border)
• Hashish - 671 kg (mostly from the Egyptian border)
• Cocaine - 255 kg
• Heroin - 15 kg
• MDMA (Ecstasy) - 13,446 tablets
• Yabba - 38,264 tablets
Israel’s Dangerous Drugs Ordinance (DDO) provides the
legislative basis for drug definition, penalties and related
enforcement authorities. The Knesset amended the Hazardous
Substances Law, which specifically defines illegal narcotics, to
include cathinone (a.k.a. hagigat), methcathinone, amphetamines
and methamphetamines (Yaba) in 2010. Israel is a party to the
1988 UN Drug Convention. Israel and the United States have a
customs mutual assistance agreement, a mutual legal assistance
treaty and an extradition treaty. Israel is a party to the UN
Convention against Corruption and the UN Convention against
Transnational Organized Crime, and has been a member of the
Commission on Narcotic Drugs in the UN Office on Drugs and
Crime (UNODC) since 2003.
The DDO created the Israel Anti-Drug Authority (IADA) under the
auspices of the Prime Minister’s Office. The IADA coordinates
cross-ministerial development, management and implementation
of all anti-drug activity on the part of the GOI, including raising
awareness, reducing demand via design and implementation of
targeted anti-drug programs, and supporting treatment facilities.
In 2011, the IADA was placed under administrative control of the
Ministry of Public Security, but remained under the PMO’s
technical control. The IADA maintains a useful and
comprehensive website in Hebrew, Arabic, Russian, and English
(http://www.antidrugs.gov.il).
There are currently 150 community treatment programs for
substance abuse throughout Israel. By law, all drug treatment
facilities must be licensed by the State and are subject to
approval by government committee, plus regular audits by
government-appointed inspectors. In the past the IADA conducted
a comprehensive survey of drug usage every four years, the last
one was completed in 2009. These surveys, according to IADA,
will become more frequent under the leadership of a new Chief
Scientist that plans to complete the comprehensive surveys every
two years and intermittent surveys every six months to track the
results of both drug intervention programs and various law
enforcement actions. In addition, IADA plans to develop a drug
monitoring center, modeled on the European Monitoring Centre
for Drugs and Drug Addiction to collect and maintain data from all
relevant agencies and organizations in Israel.
Excellent bilateral cooperation on illicit drug enforcement and
interdiction continues between U.S. and Israeli authorities, with
efforts spearheaded by the DEA regional office in Nicosia as well
as the DHS/ICE office in Tel Aviv. U.S. DEA Nicosia expanded the
already close relationship with the Israeli National Police (INP) on
international investigations during this past year. In 2011, two INP
delegates attended the DEA-hosted International Drug
Enforcement Conference (IDEC) in Cancun, Mexico. According to
DEA, the Israeli police made lasting contacts with their Egyptian
counterparts, which has increased optimism for expanding
cooperation in joint investigations on the Israeli-Egyptian border.
Notable was a record cocaine seizure at an Israeli port as a result
of DHS/ICE, DEA, and Israeli officials working together. Also,
following Israeli Supreme Court decisions in 2010, the Israel
extradited important Israeli organized crime figures to the United
States. Furthermore, DEA Cyprus maintains outstanding relations
with the Israeli Ministry of Health‘s Pharmaceutical Crimes Unit
and works with the Head of the Drug Lab in Israel on a wide range
of issues pertaining to drug identification as well as the
identification of new trends in drug production. Multiple bilateral
projects, training programs, and joint investigations are currently
in various planning stages.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Israel is a destination country for men and women subjected to
forced labor and sex trafficking. Low-skilled workers from
Thailand, China, Nepal, the Philippines, India, Sri Lanka, and, to a
lesser extent, Romania, migrate voluntarily and legally to Israel for
temporary contract labor in construction, agriculture, and home
health care provision. Some, however, subsequently face
conditions of forced labor, including through such practices as the
unlawful withholding of passports, restrictions on movement,
inability to change or otherwise choose one’s employer,
nonpayment of wages, threats, sexual assault, and physical
intimidation. Many labor recruitment agencies in source countries
and in Israel require workers to pay recruitment fees typically
ranging from $4,000 to $20,000 – a practice making workers
highly vulnerable to trafficking or debt bondage once working in
Israel. One NGO noted that recruitment fees increased in 2010.
According to the Ministry of Interior (MOI), an increased number of
migrants (approximately 14,000) crossed into Israel in 2010 from
the Sinai, compared with approximately 5,000 in 2009. Organized
Bedouin groups kept many of these migrants captive in the Sinai;
an unknown number of them were forced into sexual servitude or
labor to build homes and serve as domestic workers. Some
women from the former Soviet Union and China are subjected to
forced prostitution in Israel, although the number of women
affected has declined since the passage and implementation of
Israel’s 2006 anti-trafficking bill. Chinese sex trafficking victims are
forced into prostitution for male Chinese workers in Israel. In the
past year, the government and the media reported that four South
American women were forced into prostitution. According to an
NGO and a media report, some Israeli women and girls are
subjected to sex trafficking in Israel, but the police could not
corroborate these allegations.
The Government of Israel does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. Israel continued law enforcement
actions against sex trafficking and continued to make strong
prevention efforts. The government continued to take inadequate
steps, however, to identify and protect labor trafficking victims and
prosecute and convict labor trafficking offenders in the reporting
period.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Israel faced terrorist threats from designated terrorist
organizations, such as Hamas and Palestine Islamic Jihad (PIJ) in
the Gaza Strip and the West Bank, and Hizballah in Lebanon.
Gaza-based Palestinian terrorist organizations continued rocket
and mortar attacks into Israeli territory, and skirmished along the
security fence surrounding the Gaza Strip. The Government of
Israel responded to these terrorist threats as it has in recent
years, with operations directed at terrorist leaders, infrastructure,
and activities such as rocket launching teams. Israeli officials
assessed that Hizballah continued to re-arm following the 2006
Lebanon War. No suicide bombings were carried out against
Israeli targets. Israeli law enforcement agencies and courts
arrested and sentenced a number of terrorist suspects. The
Government of Israel emphasized counterterrorism priorities such
as countering terrorist finance and improving aviation security
efforts. Israel actively participated in regional and international
counterterrorism efforts.
Rocket and mortar fire emanating from the Gaza Strip was the
most prevalent form of attack by Palestinian terrorist
organizations. The Government of Israel held Hamas, as the
dominant organization in effective control of Gaza, responsible for
all rocket and mortar attacks emanating from Gaza, even though
the majority of such attacks were conducted by Palestinian Islamic
Jihad (PIJ) and the Popular Resistance Committees from inside
Gaza. Following such attacks, the Israel Defense Forces (IDF)
launched reprisal airstrikes targeting terrorist training and
weapons facilities, tunnels, and indirect fire launch teams in Gaza.
On November 3 and 17, joint IDF/Israel Security Agency (ISA)
operations killed two senior leaders of the Army of Islam terrorist
group in Gaza. In December, there was a marked increase of
rocket and mortar attacks from the Gaza Strip into Israel with a
corresponding escalation of IDF reprisals.
Israeli government officials continued to believe that Operation
Cast Lead in the Gaza Strip in December 2008-January 2009
helped achieve an increased level of deterrence, as the number
of rocket and mortar launches decreased in comparison to years
prior to the operation. The number of rocket and mortar launches
from Gaza increased, however, during direct peace talks in
September. Israeli officials asserted that Palestinian terrorist
organizations used the relatively quiet period since Operation
Cast Lead to re-arm and reorganize in preparation for any
potential future conflict.
The rocket attacks demonstrated technological advancements,
allowing groups to continue indigenous manufacturing and
stockpiling of rockets at a low cost; the rockets could also be
launched from greater distances and with larger warheads. In
addition, Iran increased the provision of medium-range rockets.
Israeli experts assessed that Hamas successfully smuggled Fajr-5
rockets from the Sinai Peninsula through tunnels into Gaza, and
subsequently began producing these rockets in Gaza, which were
capable of striking Tel Aviv suburbs. The Israeli Cabinet approved
a plan in January to strengthen the Israeli city of Sderot and other
communities adjacent to the Gaza Strip against rocket attacks.
The Israeli public, however, expressed frustration with the IDF's
decision not to deploy permanently the Iron Dome short-range
rocket interception system to protect communities within rocket
range. The use of a state-of-the-art KORNET anti-tank missile
fired at an IDF tank on December 6 demonstrated an increased
technological capability for Gaza-based terrorists.
Northern Border: Israeli security officials remained concerned
about the terrorist threat posed to Israel from Hizballah and its
Iranian and Syrian patrons, arguing that Iran, primarily through
the efforts of the Iranian Revolutionary Guard Corps, continued to
employ a sophisticated arms smuggling network through Syria to
Hizballah in Lebanon. Israeli politicians and security officials
pointed to Hizballah's efforts to rebuild and re-arm following the
2006 Lebanon War as evidence that Hizballah remained a threat
to Israel. Israeli government officials claimed Hizballah possessed
as many as 45,000 rockets and missiles, some of which are
capable of striking Israeli population centers including Tel Aviv.
West Bank: The IDF and ISA continued to conduct operations in
the West Bank to maintain pressure on Palestinian terrorist
organizations and their supporters. Overall, Israeli security
services continued the trend of relaxing movement and access
measures in the West Bank. Construction on the security barrier
in the West Bank and Jerusalem continued at a low level in some
areas.
2010 Terrorist Incidents: Israel faced a variety of terrorist attacks
and threats in 2010, including drive-by shootings, rocket and
mortar fire from the Gaza Strip, skirmishes along the security
fence surrounding Gaza, and in one case an attempted roadside
bombing against an Israeli diplomatic convoy in Jordan on
January 14. Israel also faced several new types of terrorist
threats. During the first week of February, Israeli security forces
neutralized three barrels containing explosive devices that
washed ashore on beaches near Ashkelon, Ashdod, and Rishon
Letzion. Israeli authorities believed terrorist organizations
released the barrels into the sea from the Gaza Strip. On June 7,
the Israeli Navy killed at least four alleged Palestinian terrorists in
wetsuits off the coast of Gaza. The IDF claimed the terrorists
intended to carry out an amphibious attack on Israel; the al-Aqsa
Martyrs Brigade claimed those killed were members of its maritime
unit.
Terrorist organizations continued to target Israel with rocket and
mortar fire from various locales throughout Gaza. In 2010, it was
estimated that between 102 and 200 projectiles landed in Israel.
In addition to rocket and mortar attacks, the IDF estimated
approximately 100 terrorist-related incidents took place near the
security fence surrounding Gaza since the beginning of 2010.
These incidents included attempts to place bombs and IEDs along
the fence or infiltrate Israeli territory, exchanges of fire, and rocket-
propelled grenade attacks.
Legislation and Law Enforcement: In January, the Israel Airports
Authority launched a biometric security system for outbound
passengers at Ben Gurion International Airport. The Unipass
Airport Management System was being tested before gradual
expansion to include within two years all departing passengers
who voluntarily register.
In December, the Knesset passed a draft bill that withholds the
salary and pensions of any Knesset member suspected of or
convicted for committing a terrorist attack. It was named after the
former chairman of the Balad Party, Azmi Bishara, who was under
investigation on suspicion of aiding Hizballah. The draft bill must
pass two more readings before entering into law.
In December, the Ministerial Committee on Legislation approved a
draft bill, which would empower courts to suspend attorney access
to a terrorist suspect for up to 12 months in cases where
suspicion exists that the meeting between the attorney and
suspect might be used to coordinate a terrorist attack. The new
draft bill may move forward following three readings and
subsequent votes in the Knesset. The Minister of Internal Security
initiated the draft bill; presently, attorney access to a detained
suspect may be suspended for several periods of 21 days up to a
maximum total period of three months.
On the law enforcement front, the ISA and Israel National Police
(INP) continued to cooperate with U.S. law enforcement agencies
on cases involving U.S. citizens killed in terrorist attacks, as well
as other counterterrorism initiatives of mutual interest. Highlights
included:
* In early January, Israeli security forces arrested two Israeli Arab
residents of East Jerusalem at the Beersheva Central Bus Station
for allegedly planning terrorist attacks on Israeli territory.
According to an ISA investigation, the two men possessed a
portable memory card with detailed plans for terrorist attacks
against a hospital, hotels, and IDF bus stops in Israel; the men
were allegedly recruited by Hamas in Jordan and Dubai.
* On October 12, the IDF Military Appeals Court found a
Palestinian member of the al-Aqsa Martyrs' Brigades guilty in the
murders of three Israelis – two soldiers and one civilian – in two
shooting attacks in 2000 and 2002. The court convicted the
defendants of voluntary manslaughter, assistance in voluntary
manslaughter, attempted voluntary manslaughter, and shooting a
person with live fire.
* On November 6, a Nazareth court indicted an imam from the
Shihab al-Din Mosque and another Israeli Arab for supporting
terrorist groups and inciting violence
Countering Terrorist Finance: Israel continued to enforce strong
measures to prevent the financing of terrorism. Israel's policy of
restricting economic activity with the Hamas-controlled Gaza Strip
has sought to reduce inflows of funds that could support terrorist
activity. The Government of Israel resumed social security
payments to eligible Gazans, an indication of strong coordination
among relevant authorities. Financing of Hamas through
charitable organizations remained a concern for Israeli
authorities. Regulation and enforcement of Israel's domestic
financial industry is comparable in scope and effect to other highly
industrialized and developed nations. Israel has active observer
status in the Council of Europe’s Select Committee of Experts on
the Evaluation Of Anti-Money Laundering Measures
(MONEYVAL), a Financial Action Task Force-style regional body.
Israel’s Money Laundering Prohibition Authority is a member of
the Egmont Group.
Regional and International Security Cooperation: Through the UN
Counter-Terrorism Committee Executive Directorate, Israel worked
with Kenya and Uganda promoting such issues as border
security, countering radicalization, and the "safe cities" concept -
a network of cameras sending live footage to a 24-hour
monitoring center. Israel also explored areas of counterterrorism
cooperation with the Central Asian republics and the Economic
Community of West African States. Israel hosted a homeland
security conference with a counterterrorism emphasis in
November, which was attended by several African nations,
including Nigeria.
Israel agreed to join NATO's Partnership Action Plan against
Terrorism (PAP-T), and was active in NATO crisis response,
consequence management, and civil emergency planning working
groups. Israel conducted a seminar on countering terrorist finance
under the EU-Israel European Neighborhood Policy Action Plan,
and participated in the EU Security Research Initiative to promote
technological developments for counterterrorism purposes. Israel
also engaged with the EU on transportation and aviation security
efforts, including container security. Israelis participated in the
OSCE Action against Terrorism Unit, including an October
conference in Astana focused on transnational terrorism
challenges. Israel was an active member of the Global Initiative to
Combat Nuclear Terrorism (GICNT), and hosted a GICNT event in
Jerusalem in June. Israel was active in the Megaports Initiative
and participated as an observer in the Gaza Counter Arms
Smuggling Initiative.
Bilaterally, Israel participated in the annual U.S.-Israel Joint
Counterterrorism Group. Israel conducted strategic dialogues,
including counterterrorism discussions, with Germany, Canada,
Australia, France, Italy, India, Russia, and the United States.
There are restrictions by Israel of movement within the Palestinian
territories and of goods moving in and out.
The Arab League (comprising 22 Arab member states) has
boycotted Israel in a systematic effort to isolate Israel
economically in support of the Palestinians.
There are three tiers to the boycott. The primary boycott prohibits
the importation of Israeli-origin goods and services into boycotting
countries. The secondary boycott prohibits individuals, as well as
private and public sector firms and organizations, in member
countries from engaging in business with any entity that does
business in Israel. The Arab League maintains a blacklist of such
firms. The tertiary boycott prohibits any
entity in a member country from doing business with a company or
individual that has business dealings with U.S. or other firms on
the Arab League blacklist.
The implementation of the boycott has varied over time among
member states.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2012:
Israel is not regarded as a regional financial center. It primarily
conducts financial activity with the markets of the United States
and Europe, and to a lesser extent with the Far East. Criminal
groups in Israel, either home-grown or with ties to the former
Soviet Union, United States, and European Union often utilize a
maze of offshore shell companies and bearer shares to obscure
beneficial owners. Law enforcement continues to focus on human
trafficking and public corruption.
Israel’s illicit drug trade is regionally focused, with Israel as more
of a transit country than a stand-alone significant market. The
authorities continue to be concerned with illegal pharmaceutical
sales, retail businesses which are suspected money-laundering
enterprises, and corruption accusations against public officials.
Bilateral cooperation between United States and Israeli law
enforcement authorities is significant, including joint repatriations,
training exercises and sharing of information where relevant.
For additional information focusing on terrorist financing, please
refer to the Department of State’s Country Reports on Terrorism,
which can be found here: http://www.state.gov/j/ct/rls/crt/
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: NO
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
KYC covered entities: Banking corporations, credit card
companies, trust companies, stock exchange members, portfolio
managers, and the Postal Bank
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 27,922 (January 1 -
October 12, 2011)
Number of CTRs received and time frame: 922,583 (January 1 -
October 12, 2011)
STR covered entities: Banking corporations, credit card
companies, trust companies, members of the Tel Aviv Stock
Exchange, portfolio managers, insurers and insurance agents,
provident funds and the companies who manage them, providers
of currency services, money services businesses and the Postal
Bank
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: 52 from January - August 2011
Convictions: 12 from January - August 2011
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Israel has observer status with the Committee of Experts on the
Evaluation of Anti-Money Laundering Measures and the Financing
of Terrorism (MONEYVAL), a Financial Action Task Force (FATF)-
style regional body. Its most recent mutual evaluation can be
found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Israel_en.asp
Enforcement and implementation issues and comments:
Israel’s “right of return” laws for citizenship have meant that crime
figures can, and have continued to, operate in their home
countries while having easy access into and out of Israel. Israeli
citizenship for those “making aliyah” does not require strong ties
to Israel such as proof of continuous residency. Therefore it is not
uncommon for some crime figures suspected of money laundering
to hold passports in a home country, a third country for business,
and Israel, without necessarily having established ties here.
U.S. law enforcement has a robust relationship with the Israel Tax
Authority’s (ITA) Anti Drug and Money Laundering Unit. U.S.
customs authorities and the ITA routinely coordinate to target illicit
finance and bulk cash smuggling between the two countries. In
2011, the Israel Money Laundering and Terror Financing
Prohibition Authority signed an MOU with the U.S.’s Financial
Crimes Enforcement Network to further cooperation on money
laundering and terrorist financing issues. In addition, U.S. and
Israeli law enforcement officials cooperate on extradition requests
for individuals accused of crimes such as money laundering. For
example, Itzhak Abergil, a U.S.-designated Consolidated Priority
Organization Target (CPOT), and several other Israeli nationals
were extradited to the United States in 2011 where they now face
a host of charges including money laundering and drug trafficking.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Israel is not a major narcotics producing or trafficking country, but
has a significant domestic demand for illegal drugs. Drug offenses
linked to other crimes such as human trafficking, illegal labor and
money laundering continue to be issues for law enforcement; a
growing youth population is a concern for future drug use. Money
laundering legislation and scrutiny of money laundering has
increased significantly in recent years, with a focus on drug
money and its ties to terror financing and human trafficking. In
addition to young people, members of minority groups and an
increasing number of illegal immigrants, particularly from Africa,
are targets for drug trafficking investigations. Many Israelis hold
multiple passports, technically giving them an advantage in drug
smuggling and trafficking. Abuse of cannabis, hard drugs, hagigat
(a qat derivative) and illegal prescription medications continues to
be a problem in Israel. In addition, yaba, a
caffeine/methamphetamine pill associated with Thailand is abused
particularly by third-country national laborers and synthetic
cannabinoids, which are not illegal in Israel, are a growing
concern for law enforcement officials. Medical marijuana is legal in
Israel, butproduction and distribution are tightly controlled.
From January thru September 2011, Israeli enforcement seized:
• Marijuana - 639 kg (mostly from the Egyptian border)
• Hashish - 671 kg (mostly from the Egyptian border)
• Cocaine - 255 kg
• Heroin - 15 kg
• MDMA (Ecstasy) - 13,446 tablets
• Yabba - 38,264 tablets
Israel’s Dangerous Drugs Ordinance (DDO) provides the
legislative basis for drug definition, penalties and related
enforcement authorities. The Knesset amended the Hazardous
Substances Law, which specifically defines illegal narcotics, to
include cathinone (a.k.a. hagigat), methcathinone, amphetamines
and methamphetamines (Yaba) in 2010. Israel is a party to the
1988 UN Drug Convention. Israel and the United States have a
customs mutual assistance agreement, a mutual legal assistance
treaty and an extradition treaty. Israel is a party to the UN
Convention against Corruption and the UN Convention against
Transnational Organized Crime, and has been a member of the
Commission on Narcotic Drugs in the UN Office on Drugs and
Crime (UNODC) since 2003.
The DDO created the Israel Anti-Drug Authority (IADA) under the
auspices of the Prime Minister’s Office. The IADA coordinates
cross-ministerial development, management and implementation
of all anti-drug activity on the part of the GOI, including raising
awareness, reducing demand via design and implementation of
targeted anti-drug programs, and supporting treatment facilities.
In 2011, the IADA was placed under administrative control of the
Ministry of Public Security, but remained under the PMO’s
technical control. The IADA maintains a useful and
comprehensive website in Hebrew, Arabic, Russian, and English
(http://www.antidrugs.gov.il).
There are currently 150 community treatment programs for
substance abuse throughout Israel. By law, all drug treatment
facilities must be licensed by the State and are subject to
approval by government committee, plus regular audits by
government-appointed inspectors. In the past the IADA conducted
a comprehensive survey of drug usage every four years, the last
one was completed in 2009. These surveys, according to IADA,
will become more frequent under the leadership of a new Chief
Scientist that plans to complete the comprehensive surveys every
two years and intermittent surveys every six months to track the
results of both drug intervention programs and various law
enforcement actions. In addition, IADA plans to develop a drug
monitoring center, modeled on the European Monitoring Centre
for Drugs and Drug Addiction to collect and maintain data from all
relevant agencies and organizations in Israel.
Excellent bilateral cooperation on illicit drug enforcement and
interdiction continues between U.S. and Israeli authorities, with
efforts spearheaded by the DEA regional office in Nicosia as well
as the DHS/ICE office in Tel Aviv. U.S. DEA Nicosia expanded the
already close relationship with the Israeli National Police (INP) on
international investigations during this past year. In 2011, two INP
delegates attended the DEA-hosted International Drug
Enforcement Conference (IDEC) in Cancun, Mexico. According to
DEA, the Israeli police made lasting contacts with their Egyptian
counterparts, which has increased optimism for expanding
cooperation in joint investigations on the Israeli-Egyptian border.
Notable was a record cocaine seizure at an Israeli port as a result
of DHS/ICE, DEA, and Israeli officials working together. Also,
following Israeli Supreme Court decisions in 2010, the Israel
extradited important Israeli organized crime figures to the United
States. Furthermore, DEA Cyprus maintains outstanding relations
with the Israeli Ministry of Health‘s Pharmaceutical Crimes Unit
and works with the Head of the Drug Lab in Israel on a wide range
of issues pertaining to drug identification as well as the
identification of new trends in drug production. Multiple bilateral
projects, training programs, and joint investigations are currently
in various planning stages.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Israel is a destination country for men and women subjected to
forced labor and sex trafficking. Low-skilled workers from
Thailand, China, Nepal, the Philippines, India, Sri Lanka, and, to a
lesser extent, Romania, migrate voluntarily and legally to Israel for
temporary contract labor in construction, agriculture, and home
health care provision. Some, however, subsequently face
conditions of forced labor, including through such practices as the
unlawful withholding of passports, restrictions on movement,
inability to change or otherwise choose one’s employer,
nonpayment of wages, threats, sexual assault, and physical
intimidation. Many labor recruitment agencies in source countries
and in Israel require workers to pay recruitment fees typically
ranging from $4,000 to $20,000 – a practice making workers
highly vulnerable to trafficking or debt bondage once working in
Israel. One NGO noted that recruitment fees increased in 2010.
According to the Ministry of Interior (MOI), an increased number of
migrants (approximately 14,000) crossed into Israel in 2010 from
the Sinai, compared with approximately 5,000 in 2009. Organized
Bedouin groups kept many of these migrants captive in the Sinai;
an unknown number of them were forced into sexual servitude or
labor to build homes and serve as domestic workers. Some
women from the former Soviet Union and China are subjected to
forced prostitution in Israel, although the number of women
affected has declined since the passage and implementation of
Israel’s 2006 anti-trafficking bill. Chinese sex trafficking victims are
forced into prostitution for male Chinese workers in Israel. In the
past year, the government and the media reported that four South
American women were forced into prostitution. According to an
NGO and a media report, some Israeli women and girls are
subjected to sex trafficking in Israel, but the police could not
corroborate these allegations.
The Government of Israel does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. Israel continued law enforcement
actions against sex trafficking and continued to make strong
prevention efforts. The government continued to take inadequate
steps, however, to identify and protect labor trafficking victims and
prosecute and convict labor trafficking offenders in the reporting
period.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Israel faced terrorist threats from designated terrorist
organizations, such as Hamas and Palestine Islamic Jihad (PIJ) in
the Gaza Strip and the West Bank, and Hizballah in Lebanon.
Gaza-based Palestinian terrorist organizations continued rocket
and mortar attacks into Israeli territory, and skirmished along the
security fence surrounding the Gaza Strip. The Government of
Israel responded to these terrorist threats as it has in recent
years, with operations directed at terrorist leaders, infrastructure,
and activities such as rocket launching teams. Israeli officials
assessed that Hizballah continued to re-arm following the 2006
Lebanon War. No suicide bombings were carried out against
Israeli targets. Israeli law enforcement agencies and courts
arrested and sentenced a number of terrorist suspects. The
Government of Israel emphasized counterterrorism priorities such
as countering terrorist finance and improving aviation security
efforts. Israel actively participated in regional and international
counterterrorism efforts.
Rocket and mortar fire emanating from the Gaza Strip was the
most prevalent form of attack by Palestinian terrorist
organizations. The Government of Israel held Hamas, as the
dominant organization in effective control of Gaza, responsible for
all rocket and mortar attacks emanating from Gaza, even though
the majority of such attacks were conducted by Palestinian Islamic
Jihad (PIJ) and the Popular Resistance Committees from inside
Gaza. Following such attacks, the Israel Defense Forces (IDF)
launched reprisal airstrikes targeting terrorist training and
weapons facilities, tunnels, and indirect fire launch teams in Gaza.
On November 3 and 17, joint IDF/Israel Security Agency (ISA)
operations killed two senior leaders of the Army of Islam terrorist
group in Gaza. In December, there was a marked increase of
rocket and mortar attacks from the Gaza Strip into Israel with a
corresponding escalation of IDF reprisals.
Israeli government officials continued to believe that Operation
Cast Lead in the Gaza Strip in December 2008-January 2009
helped achieve an increased level of deterrence, as the number
of rocket and mortar launches decreased in comparison to years
prior to the operation. The number of rocket and mortar launches
from Gaza increased, however, during direct peace talks in
September. Israeli officials asserted that Palestinian terrorist
organizations used the relatively quiet period since Operation
Cast Lead to re-arm and reorganize in preparation for any
potential future conflict.
The rocket attacks demonstrated technological advancements,
allowing groups to continue indigenous manufacturing and
stockpiling of rockets at a low cost; the rockets could also be
launched from greater distances and with larger warheads. In
addition, Iran increased the provision of medium-range rockets.
Israeli experts assessed that Hamas successfully smuggled Fajr-5
rockets from the Sinai Peninsula through tunnels into Gaza, and
subsequently began producing these rockets in Gaza, which were
capable of striking Tel Aviv suburbs. The Israeli Cabinet approved
a plan in January to strengthen the Israeli city of Sderot and other
communities adjacent to the Gaza Strip against rocket attacks.
The Israeli public, however, expressed frustration with the IDF's
decision not to deploy permanently the Iron Dome short-range
rocket interception system to protect communities within rocket
range. The use of a state-of-the-art KORNET anti-tank missile
fired at an IDF tank on December 6 demonstrated an increased
technological capability for Gaza-based terrorists.
Northern Border: Israeli security officials remained concerned
about the terrorist threat posed to Israel from Hizballah and its
Iranian and Syrian patrons, arguing that Iran, primarily through
the efforts of the Iranian Revolutionary Guard Corps, continued to
employ a sophisticated arms smuggling network through Syria to
Hizballah in Lebanon. Israeli politicians and security officials
pointed to Hizballah's efforts to rebuild and re-arm following the
2006 Lebanon War as evidence that Hizballah remained a threat
to Israel. Israeli government officials claimed Hizballah possessed
as many as 45,000 rockets and missiles, some of which are
capable of striking Israeli population centers including Tel Aviv.
West Bank: The IDF and ISA continued to conduct operations in
the West Bank to maintain pressure on Palestinian terrorist
organizations and their supporters. Overall, Israeli security
services continued the trend of relaxing movement and access
measures in the West Bank. Construction on the security barrier
in the West Bank and Jerusalem continued at a low level in some
areas.
2010 Terrorist Incidents: Israel faced a variety of terrorist attacks
and threats in 2010, including drive-by shootings, rocket and
mortar fire from the Gaza Strip, skirmishes along the security
fence surrounding Gaza, and in one case an attempted roadside
bombing against an Israeli diplomatic convoy in Jordan on
January 14. Israel also faced several new types of terrorist
threats. During the first week of February, Israeli security forces
neutralized three barrels containing explosive devices that
washed ashore on beaches near Ashkelon, Ashdod, and Rishon
Letzion. Israeli authorities believed terrorist organizations
released the barrels into the sea from the Gaza Strip. On June 7,
the Israeli Navy killed at least four alleged Palestinian terrorists in
wetsuits off the coast of Gaza. The IDF claimed the terrorists
intended to carry out an amphibious attack on Israel; the al-Aqsa
Martyrs Brigade claimed those killed were members of its maritime
unit.
Terrorist organizations continued to target Israel with rocket and
mortar fire from various locales throughout Gaza. In 2010, it was
estimated that between 102 and 200 projectiles landed in Israel.
In addition to rocket and mortar attacks, the IDF estimated
approximately 100 terrorist-related incidents took place near the
security fence surrounding Gaza since the beginning of 2010.
These incidents included attempts to place bombs and IEDs along
the fence or infiltrate Israeli territory, exchanges of fire, and rocket-
propelled grenade attacks.
Legislation and Law Enforcement: In January, the Israel Airports
Authority launched a biometric security system for outbound
passengers at Ben Gurion International Airport. The Unipass
Airport Management System was being tested before gradual
expansion to include within two years all departing passengers
who voluntarily register.
In December, the Knesset passed a draft bill that withholds the
salary and pensions of any Knesset member suspected of or
convicted for committing a terrorist attack. It was named after the
former chairman of the Balad Party, Azmi Bishara, who was under
investigation on suspicion of aiding Hizballah. The draft bill must
pass two more readings before entering into law.
In December, the Ministerial Committee on Legislation approved a
draft bill, which would empower courts to suspend attorney access
to a terrorist suspect for up to 12 months in cases where
suspicion exists that the meeting between the attorney and
suspect might be used to coordinate a terrorist attack. The new
draft bill may move forward following three readings and
subsequent votes in the Knesset. The Minister of Internal Security
initiated the draft bill; presently, attorney access to a detained
suspect may be suspended for several periods of 21 days up to a
maximum total period of three months.
On the law enforcement front, the ISA and Israel National Police
(INP) continued to cooperate with U.S. law enforcement agencies
on cases involving U.S. citizens killed in terrorist attacks, as well
as other counterterrorism initiatives of mutual interest. Highlights
included:
* In early January, Israeli security forces arrested two Israeli Arab
residents of East Jerusalem at the Beersheva Central Bus Station
for allegedly planning terrorist attacks on Israeli territory.
According to an ISA investigation, the two men possessed a
portable memory card with detailed plans for terrorist attacks
against a hospital, hotels, and IDF bus stops in Israel; the men
were allegedly recruited by Hamas in Jordan and Dubai.
* On October 12, the IDF Military Appeals Court found a
Palestinian member of the al-Aqsa Martyrs' Brigades guilty in the
murders of three Israelis – two soldiers and one civilian – in two
shooting attacks in 2000 and 2002. The court convicted the
defendants of voluntary manslaughter, assistance in voluntary
manslaughter, attempted voluntary manslaughter, and shooting a
person with live fire.
* On November 6, a Nazareth court indicted an imam from the
Shihab al-Din Mosque and another Israeli Arab for supporting
terrorist groups and inciting violence
Countering Terrorist Finance: Israel continued to enforce strong
measures to prevent the financing of terrorism. Israel's policy of
restricting economic activity with the Hamas-controlled Gaza Strip
has sought to reduce inflows of funds that could support terrorist
activity. The Government of Israel resumed social security
payments to eligible Gazans, an indication of strong coordination
among relevant authorities. Financing of Hamas through
charitable organizations remained a concern for Israeli
authorities. Regulation and enforcement of Israel's domestic
financial industry is comparable in scope and effect to other highly
industrialized and developed nations. Israel has active observer
status in the Council of Europe’s Select Committee of Experts on
the Evaluation Of Anti-Money Laundering Measures
(MONEYVAL), a Financial Action Task Force-style regional body.
Israel’s Money Laundering Prohibition Authority is a member of
the Egmont Group.
Regional and International Security Cooperation: Through the UN
Counter-Terrorism Committee Executive Directorate, Israel worked
with Kenya and Uganda promoting such issues as border
security, countering radicalization, and the "safe cities" concept -
a network of cameras sending live footage to a 24-hour
monitoring center. Israel also explored areas of counterterrorism
cooperation with the Central Asian republics and the Economic
Community of West African States. Israel hosted a homeland
security conference with a counterterrorism emphasis in
November, which was attended by several African nations,
including Nigeria.
Israel agreed to join NATO's Partnership Action Plan against
Terrorism (PAP-T), and was active in NATO crisis response,
consequence management, and civil emergency planning working
groups. Israel conducted a seminar on countering terrorist finance
under the EU-Israel European Neighborhood Policy Action Plan,
and participated in the EU Security Research Initiative to promote
technological developments for counterterrorism purposes. Israel
also engaged with the EU on transportation and aviation security
efforts, including container security. Israelis participated in the
OSCE Action against Terrorism Unit, including an October
conference in Astana focused on transnational terrorism
challenges. Israel was an active member of the Global Initiative to
Combat Nuclear Terrorism (GICNT), and hosted a GICNT event in
Jerusalem in June. Israel was active in the Megaports Initiative
and participated as an observer in the Gaza Counter Arms
Smuggling Initiative.
Bilaterally, Israel participated in the annual U.S.-Israel Joint
Counterterrorism Group. Israel conducted strategic dialogues,
including counterterrorism discussions, with Germany, Canada,
Australia, France, Italy, India, Russia, and the United States.
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| ISRAEL |
| KnowYourCountry |
|
__________________________________________________
AML News / Updates
April 2, 2012 - IMF Report - Israel: Report on the Observance of
Standards and Codes
Read Report
September 7, 2010 - OECD: Israel becomes the OECD’s 33rd member
Read More....
Links:
Worldwide AML Legislation (International Bar Association)
Israel Money Laundering Prohibition Authority (IMPA)
AML News / Updates
April 2, 2012 - IMF Report - Israel: Report on the Observance of
Standards and Codes
Read Report
September 7, 2010 - OECD: Israel becomes the OECD’s 33rd member
Read More....
Links:
Worldwide AML Legislation (International Bar Association)
Israel Money Laundering Prohibition Authority (IMPA)
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| Last Updated: 16 April 2012 |