“Israel is a knowledge center in the fight to prevent money laundering and terrorism financing”

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What is money laundering? Take money from crime (e.g. Drug trafficking) and launder it through the creation of legitimate businesses. What is the financing of terrorism? Opposite: taking good legal money (e.g. Donations) and use to finance terrorist activities.

Although two opposite processes, but the financing of terrorism is a significant part of money laundering, a worldwide phenomenon which all countries and international organizations severely struggle against, adopting the most advanced technologies.

It was the subject of the Ament fourth conference, jointly with PWC Israel, regarding fighting money laundering and financing of terrorism, held in Tel Aviv. Data Presented is showing that terrorist organizations such as Hamas, Hezbollah and Islamic Jihad, operate charities, allegedly legal businesses as a FRONT used to finance terrorism. Donations are considered very important in Islam commands but such funds donated are used to permanently finance terrorism. Yair Dagan, Ament compliance Inc. CEO and organizer of the conference, revealed that U.S. authorities have investigated and found that the financial cost of the Twin Towers attack was minimal – about half a million USD (flying lessons, rent, travel and knives), while the cost of the attack on London’s subway cost only 10 thousand pounds. However, terrorist groups need large amounts to finance logistics, payroll and financial support to families of terrorists.

Avi Jurisch, a former senior at the U.S. Treasury, specializing in Iran’s efforts to bypass international sanctions, said that 30 Iranian banks are on a black list of the U.S. government, about 20 of them because of evidence of financial activities to support terrorism and terrorist organizations such as Hamas, Hezbollah, al Qaeda and others. It is Prohibited to conduct transactions with these banks, and the U.S. strict and prohibits the existence of financial relationships between foreign banks and the blacklisted banks, which include countries such as Sudan, Libya, Syria, Iraq, Burma, and Venezuela. He said the sanctions are not destroying the countries, but the sanctions imposed on Iran has influenced and damaged to Iran – less foreign investment, decrease in banking activity and less sales of oil and a lot less Iranian involvement in international business.

How to fight money laundering and terrorism financing? Specifications by Yair Dagan and the Attorney Paul Landes, head of the Anti-Money Laundering:

• Identifying customers at risk. A person who has a modest account and deposited in his account suddenly tens of thousands or hundreds of thousands of dollars from a place known as a tax haven (Cayman Islands) – red light.
• The client opens accounts in several banks. If large amounts, an examination is conducted and will be reported to the Anti-Money Laundering Ministry of Justice, which holds a database. All deposit in a bank of more than 50 thousand shekels in cash is reported.
• In Israel IMLPA is allowed to transmit information, in case of suspicion of money laundering for finance terrorism, to security authorities as Military Intelligence, Mossad and Ministry for Institution.
• A tight control over the border crossings to prevent the transfer of funds to finance terrorism.
• The systems are now dealing with new technologies for transferring funds and payments, such as PayPal, BITCOIN (virtual money) and others. U.S. FBI has expressed concern that funds transfers through BITCOIN may be used to finance terrorism.
• The U.S. imposes heavy fines of millions of dollars on banks and financial institutions that are caught with money laundering or doing business with countries and institutions that are blacklisted.
• A Bank doing business with a bank that does business with an Iranian bank will not be able to operate in the U.S. The banking system is global. Many banks, including Israel, have branches abroad or foreign banks represent them abroad. Israeli banks have been found to be in financial business, although most indirect via a third party or fourth, with “blacklisted” banks and financial institutions  – forbidden due to ties with Iran, activity of money laundering and / or terrorist financing.
• The speakers at the conference emphasized that as in other criminal fields, identification is the most crucial step: identifying customers at risk (“double check who is the client of your customer”), tracking financial activities and business irregularities, establishment of databases, tracking the money trail, verification of information, saving documents, report to the proper authorities and dealing with sophisticated payment systems through Internet networks.
• The State of Israel is well positioned in these areas: periodic inspections of the International MONEYVAL organization show that “Israel has a positive cultural change in the fight against money laundering” and law enforcement authorities  give top priority to fighting corruption at home and abroad”, says the audit report. There is a battle on illegal gambling – money that may fund terrorism. Israel is the focus of knowledge in the field of money laundering prevention and first place in the detection and registration of terrorist organizations.

By iHLS NewsDesk