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Israel to Cut Down on Cash Transactions in Push Against Money Laundering

By Jspace Staff on 9/18/2013 at 3:50 PM

Categories: Israel, Finance

Israel to Cut Down on Cash Transactions in Push Against Money Laundering

Israel has announced the start of a new program aimed at decreasing the number of cash transactions in the Jewish state.

The move was unanimously agreed upon yesterday by the government, which will establish a team designed to reduce cash payments. The new plan is due in just 90 days.

"In Israel's economy there are billions of shekels that are not taxed, so the public does not enjoy that money,” said Harel Locker, who will head the team.

“The committee will find innovative, logical solutions to fix this situation and present a program for the government's approval.”

The motion is part of Benjamin Netanyahu’s initiative to cut down on black market activity, as cash transactions are considered one of the biggest obstacles to fighting the illegal practice.

“Cash is the fuel of the shadow economy. It’s the only way to work off the books,” stated a Visa study released in June. “When you use cash, it’s easier to hide income.”

In 2012, Israelis withdrew NIS 205 billion, in contrast to the NIS 139 billion they spent via plastic.

Comments

Саша Каплан
Саша Каплан 9/19/2013 at 4:36am
and out of touch with reality