Criminal Procedure (Forfeiture of Proceeds of Crime) Bill, 5786-2026

This bill seeks to create a uniform and coherent arrangement for the forfeiture of proceeds of crime, replacing the various existing arrangements in different laws. The goal is to replace the variety of current arrangements and distinguish between the forfeiture of proceeds of crime and the forfeiture of instrumentalities of crime. The nature of the change: Forfeiture of proceeds of crime: The proposed law focuses on the forfeiture of property obtained as a result of committing an offense, whether as wages, profit, or savings in expenses. The justification for this forfeiture is to prevent the offender from benefiting from the fruits of the crime and to reduce the economic incentive to commit offenses. Forfeiture of instrumentalities of crime: The proposed law does not deal with the forfeiture of means used to commit an offense, but only with the proceeds of the crime themselves. Distinction between forfeiture of proceeds and instrumentalities: The proposed law distinguishes between the two types of forfeiture, with the justification for the forfeiture of proceeds being stronger, as there is no legitimate property interest in such assets. Main arrangements in the proposed law: 1. Forfeiture of proceeds of crime after conviction: Forfeiture order after conviction: The court, at the request of the prosecutor, shall order the forfeiture of the value of the proceeds of the crime for which the defendant was convicted. Determination of the value of proceeds: The court shall determine the value of the proceeds of the crime. Forfeiture of other property: If the property itself is not found, the court may order the forfeiture of other property of the defendant, or of another person under certain conditions (e.g., if the property was transferred for low consideration or without consideration to prevent forfeiture). Forfeiture following a determination of a criminal lifestyle: The court may determine that the defendant led a criminal lifestyle and, accordingly, order the forfeiture of the proceeds of the crime. This determination is based on convictions for certain offenses or on the scope of the proceeds of the crime. 2. Forfeiture of proceeds of crime or their value without conviction: Forfeiture order without conviction: In certain cases, it will be possible to request the forfeiture of proceeds of crime without a conviction. This is possible in cases where a forfeiture request was filed but an indictment cannot be filed against the suspect (e.g., if they died or cannot be located), or if criminal proceedings were terminated for certain reasons. Forfeiture of the value of proceeds without conviction: In cases where the proceeds of the crime themselves cannot be forfeited, it will be possible to request the forfeiture of their value. This is possible when criminal proceedings were terminated or when an indictment cannot be filed. Strict conditions: These arrangements are subject to strict conditions, such as proving a link between the property and the offense, and proving that it is impossible to initiate criminal proceedings. 3. Exemptions to forfeiture: Property rights: The law sets exemptions to forfeiture when there are property rights of a third party, such as creditors or good-faith purchasers. Movable property that cannot be attached: The law prevents the forfeiture of movable property that cannot be attached under the Execution Law. Protection of basic livelihood: The law protects the basic livelihood rights of the defendant and their family, and prevents the forfeiture of a residence and reasonable means of subsistence. 4. Temporary order: Purpose of the order: A temporary order (seizure, prevention, attachment, property management) may be issued to prevent the frustration of forfeiture or damage to the value of the property intended for forfeiture. Conditions for issuing an order: The order will be granted only in cases where there is reasonable cause to assume that the property will be used for forfeiture, and provided other conditions are met. Protection of third-party rights: The temporary order will take into account the rights of third parties, and a temporary order may be issued only after an opportunity has been given to present arguments. 5. Amendment, cancellation, and appeal: Amendment and cancellation of a forfeiture order: It will be possible to request the amendment or cancellation of a forfeiture order in cases of discovery of new evidence or when there is a change in circumstances. Appeal: It will be possible to appeal decisions regarding a forfeiture order, a temporary order, and decisions regarding the amendment or cancellation of an order. 6. Miscellaneous provisions: Application of search and seizure powers: The search and seizure powers under the Arrest and Search Ordinance will also apply to the forfeiture of property under this law. Legislative amendments: The proposed law includes amendments to existing laws, such as the Penal Law, the Dangerous Drugs Ordinance, and the Prohibition of Money Laundering Law, in order to adapt them to the new arrangements.

Source: הצעת חוק לקריאה הראשונה